This archive report was first published on 5 August 2019.
Published on August 5, 2019, Nasdaq, the world's second-largest stock market, is diversifying its revenue streams by entering the sports betting industry.
The American exchange has entered a deal with UK-based 'Football Index', a sports betting firm that allows people to bet on players. As part of the agreement, Nasdaq will provide technology to the sports betting company.
Nasdaq's CEO, Adena Friedman, emphasized the importance of innovation in the company's success, stating, “Complacency is the killer of every great company,” in an interview with Bloomberg.
With competition in the stock market on the rise, Nasdaq is seeking to generate revenue from diverse sources. The exchange currently generates only 25 to 30 percent of its revenue from stock trading, with the remaining income coming from data and analytics, corporate services, and trading systems.
Nasdaq's expansion into the sports betting industry is not an isolated move. The exchange has already provided trading technology to other exchanges, including those in Bermuda, Indonesia, and Iraq. Additionally, Nasdaq has partnerships with sports betting and horse racing companies such as the Hong Kong Jockey Club and Australia's Tabcorp.
London Stock Exchange (LSE) is also working to increase its income streams, with plans to acquire Refinitiv, a data services company, and trade data through the new acquisition.
