High Roller Stock Jumps on News of Prediction Markets Deal

• At one point today, the stock more than doubled on news of a prediction markets deal with Crypto.com
• Traders may have realized the news isn’t all that new, explaining why the gains were trimmed

High Roller Technologies (NYSE: ROLR) surged on news of a Crypto.com partnership Tuesday, April 14, though the micro-cap stock pared most gains by the closing bell.

Shares of High Roller, a Las Vegas-based iGaming operator, traded up as much as 130% today, but settled lower by 45.58% on volume that was more than 40x the daily average.

Intraday enthusiasm for the gaming stock stemmed from a press release detailing a prediction markets agreement with Crypto.com | Derivatives North America (CDNA).

The agreement will enable High Roller to offer CDNA’s event contracts in the USA, creating a new strategic growth opportunity for the Company across finance, sports and entertainment and marking its entry into the rapidly emerging prediction markets sector,” according to the statement.

Financial terms of the agreement weren’t disclosed.

High Roller Stock Investors Have Seen This Movie Before

Any company is free to tout its partnerships, however when those agreements involve prediction markets, there seems to be extra buzz these days.

Today, High Roller investors may have latched onto estimates indicating the US prediction market could eventually swell to $1 trillion in volume and some talk of the company potentially expanding its related offering to international markets down the road.

“Following the successful execution of the Agreement, High Roller intends to provide updates regarding its product, brand, launch timing, and marketing partnerships,” according to the statement.

Another Reason High Roller Stock Popped

Today’s move by High Roller stock deserves more context and it’s arguably derived from the fact that some market participants, including active retail traders, are hungry for dedicated prediction market equities, but that asset class is sparsely populated.

Sure, Coinbase Global (NASDAQ: COIN) and Robinhood Markets (NASDAQ: HOOD) are publicly traded and have prediction markets exposure.

Then there are the listed sportsbook operators, such as DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT), that are wading into event contracts, too.

However, none of those firms are dedicated prediction markets entities and with Kalshi and Polymarket still privately held, some aggressive retail traders may be apt to embrace names such as High Roller.