High Roller Stock Explodes After Crypto.com Prediction Markets Deal
High Roller Technologies, Inc. (NYSE: ROLR) announced a prediction market deal with Crypto.com on Wednesday. Its stock price subsequently spiked more than 500% within hours of the news.
High Roller Technologies is a casino technology provider that operates online casino brands High Roller and Fruta. Its stock price previously closed at $3.52. It was trading at at $23.83 by 3 PM ET, a 577% increase. (Update: On Thursday, High Roller’s stock opened at $22.85 after closing at $18.89.)
“We’re thrilled to bring High Roller to the USA through this strategic partnership with Crypto.com,” commented Seth Young, Chief Executive Officer at High Roller. “Pairing the massive appeal of prediction markets with our strong distribution capabilities is an incredibly exciting opportunity, and we’re looking forward to introducing our premium experience to consumers across the country.”
Gaming and value in federal regulation
The prediction market industry offers many benefits that the gaming industry would like for itself.
Gambling is regulated by state regulators, so gambling companies like DraftKings and FanDuel must pursue licenses state by state. Each state also has its own license costs, tax rates, and regulations. Sports exchange company Sporttrade has been unable to launch in states like Tennessee because of state regulations that would tax its “handle” in the same way sportsbooks are taxed, despite wildly different revenue models.
Tennessee* charges operators, as a tax, 2% of the handle.
It is impossible to offer a market-based product that puts the consumer first in Tennessee under such a tax regime.
*This is no fault of the regulators in Tennessee, who are good people. https://t.co/FndyFpwHhD
— Alex Kane (@a_kane47) December 2, 2025
The Commodity Futures Trading Commission (CFTC) has a single corporate tax rate and allows 50-state access. It’s one reason why, despite hostility toward the prediction market industry from state gaming regulators, gaming companies have been looking for ways to offer sports contracts under CFTC regulation.
Fighting for scraps
Sportsbooks are hoping to protect their revenue, and state gaming regulators are hoping to protect their new tax bases. Meanwhile, prediction market platforms are trying to keep states from encroaching on their operations.
Legal battles haven’t stopped the gaming industry from pushing into the prediction market industry. DraftKings and FanDuel have formed partnerships to offer sports contracts in certain states. Underdog has said that it plans to use Kalshi’s sports contracts to hedge risk on prop bets that Underdog takes.
Gaming companies see great value in the more favorable regulations the CFTC offers. Clearly, the market and investors see great value in it, too.