Joey Levy made a decision that most platforms in his position have avoided: instead of building a prediction market from scratch, he licensed one. Betr 2.0, the expanded version of the gaming app co-founded by Jake Paul, launched this week with Polymarket markets embedded directly inside it — the first consumer app to do so, according to the company.
The integration is narrower than it sounds at first. Polymarket markets are rolling out in phases, to eligible users in select states, starting with sports. The infrastructure is Polymarket's. The audience is Betr's. Levy is betting that the combination is worth more than either piece separately, and the logic is not unreasonable: Polymarket has contracts and liquidity; Betr has a consumer brand, a celebrity co-founder, and a user base that came in through microbetting and stayed for the arcade.
What Levy is actually solving for is regulatory surface area. He said it plainly: nobody knows how the regulatory environment will play out, so having several products regulated differently within one unified experience gives Betr a differentiated position. That is not a prediction market strategy. That is a portfolio hedge dressed as a product strategy, and it is probably the right call given what is happening to operators who went all-in on one regulatory theory.
The rest of the industry is learning that lesson expensively. Kalshi has now been denied injunctions in multiple circuits. Underdog surrendered daily fantasy licences in seven states before filing federal suits in five others. The operators who built their entire business on the argument that CFTC designation overrides state law are now waiting for the Supreme Court to either rescue them or confirm that they misjudged the exposure. That process will take time that a consumer business does not always have.
Betr does not have that problem in the same form. Its prediction market offering runs through Polymarket, which means the legal and regulatory weight sits with Polymarket. If a state moves against prediction market contracts, Betr phases out that product tier in that state and keeps running sports betting, casino, and arcade under whatever licences cover those. The super app structure is the hedge.
I've seen this architecture before in adjacent markets — a consumer layer that licenses regulated infrastructure rather than holding it, keeping flexibility while sacrificing some margin. The risk is that the host product never develops its own depth. If Polymarket's liquidity is the draw, users who want serious prediction markets will eventually go directly to Polymarket. What keeps them inside Betr 2.0 is the bundle, and whether the Jake Paul brand, the Entourage reunion campaign, and Lonzo Ball are enough to hold a user who has figured out where the underlying market lives is genuinely open.
Betr 2.0 embeds Polymarket prediction market contracts directly into its gaming app while keeping the legal and regulatory responsibility with Polymarket itself. If a state moves against prediction market contracts, Betr can phase out that product tier in that jurisdiction and continue operating sports betting, casino, and arcade products under existing state licences. This portfolio approach hedges against an unpredictable regulatory environment without forcing a single bet on one interpretation of CFTC versus state authority.
Polymarket markets are rolling out to eligible users in select states in phases, starting with sports contracts. The integration is narrower than embedding Polymarket's full market catalog; Betr is prioritizing sports markets initially rather than launching all contract types simultaneously across all jurisdictions where Betr operates.
Betr can phase out Polymarket prediction markets in any state where regulators target them, while maintaining access to the app's sports betting, casino, and arcade products. This prevents a total shutdown of Betr's service in that state and protects users' access to the non-prediction-market portions of the platform, unlike competitors who built entire businesses on a single regulatory theory.
If Polymarket's liquidity becomes the primary draw for users interested in prediction markets, those users may eventually migrate directly to Polymarket rather than remain inside Betr 2.0. Betr's ability to retain these users depends on whether its bundled offerings—the Jake Paul brand, celebrity partnerships, and arcade games—create enough value to justify staying inside the app instead of accessing Polymarket directly.