High Roller Technologies Inc. (ROLR) shares surged as much as 130% on Tuesday following the announcement of a new partnership with Crypto.com to launch event-based prediction markets in the United States.
The Las Vegas-based casino operator plans to offer Crypto.com Derivatives North America (CDNA) event contracts to its customers. These contracts will cover various sectors, including finance, sports, and entertainment.
CDNA operates as a CFTC-registered exchange and clearinghouse and functions as an affiliate of Crypto.com. High Roller did not specify an official launch date for the new market offerings.
Following the news, High Roller's stock reached a peak of 130% before stabilizing at 65% higher than previous levels, trading at $8.32. Crypto.com’s CRO token also saw a slight uptick, gaining 3% to reach 7 cents.
The rise of event-based trading
Prediction markets are evolving from niche betting platforms into sophisticated trading venues that aggregate real-world event probabilities. High Roller identifies the U.S. prediction market opportunity as a potential $1 trillion sector.
Industry leaders like Kalshi, a CFTC-regulated U.S. exchange, and Polymarket, a decentralized market, are already established players in this space. High Roller's expansion targets the growing demand for these types of event contracts.
According to a report from U.S. bank Citizens, prediction markets currently generate an annualized revenue rate exceeding $3 billion. This figure rose from approximately $2 billion in December.
Analysts and High Roller executives project that the industry could see trading volumes exceed $1 trillion and revenues reach $10 billion by 2030.