High Roller Shares Slide as Prediction Market Update Fails to Lift Stock

Shares of High Roller Technologies (NYSE: ROLR) tumbled in late trading Tuesday after the gaming company and aspiring prediction market operator delivered a disappointing set of second-quarter results, overshadowing more clarity on its event contract plans.

The Las Vegas-based iGaming operator is morphing into a prediction market player, which has previously acted as a catalyst for the micro-cap stock. In conjunction with the earnings update, High Roller told investors it made some prediction market strides in the June quarter.

During the recently completed quarter, High Roller obtained approval from the National Futures Association (NFA) “and registered as a Guaranteed Introducing Broker” – important regulatory steps toward bringing a consumer-facing yes/no exchange to life.

More High Roller Prediction Market Progress

In news that sent its stock surging in April, High Roller told investors it will partner with Crypto.com | Derivatives North America (CDNA) on its prediction market rollout. That agreement remains active, tethering High Roller to one of the first CFTC-regulated exchanges to offer U.S. sports event contracts—and one that already powers event trading for major brands like Fanatics and FanDuel.

Young also noted that in the second quarter, High Roller debuted a free-to-play prediction challenge aimed at drumming up familiarity with ROLR.com and the ROLR brand, which will be the company’s prediction market label. High Roller also provided some updates on its relationship with Crypto.com.

“Under the agreement, High Roller plans to operate as a Guaranteed Introducing Broker and provide access to CDNA event contracts across finance, sports and entertainment categories through the ROLR platform,” according to the statement.

The company also noted that Crypto.com’s OG platform will be ROLR’s introducing broker when the platform gets off the ground.

High Roller Bullish on Prediction Markets

In the April through June period, High Roller lost 22 cents a share on sales of $2.81 million with the latter figure missing analysts’ estimate by $190,000. However, the company remains undaunted in its views regarding the long-term trajectory of the event contract industry.

Citing research from Macquarie estimating that prediction market volume could swell to $1.5 trillion by 2030 and a separate report from Bernstein forecasting that the industry will reach $1 trillion in volume by that year, High Roller waxed bullish on the event contract opportunity set.

“The prediction market category continues to expand rapidly, with multiple third-party industry forecasts pointing to a trillion-dollar annual trading-volume opportunity by the end of the decade,” according to the press release.

High Roller concluded the quarter with $18 million in cash, or nearly a quarter of its market value of $73.16 million.