Genius Sports Limited (NYSE:GENI) is one of the popular penny stocks on Robinhood to buy. On March 24, the Public Health Advocacy Institute, or PHAI, filed a product liability lawsuit in the Philadelphia County Court of Common Pleas against Genius Sports Limited (NYSE:GENI), DraftKings (NASDAQ:DKNG), Flutter Entertainment’s (NYSE:FLUT) FanDuel, the National Football League (NFL), and five individual sportsbook employees. The lawsuit is on behalf of two Pennsylvania men who allege they developed severe gambling addictions after using the DraftKings and FanDuel apps.
The lawsuit identified microbetting as the key issue. Microbetting is rapid, in-game wagering on granular real-time events such as the next play in a football game or the next pitch in baseball. According to the complaint, this product, microbetting, is deliberately engineered for addiction. The fact that it is powered by artificial intelligence, machine learning, and cloud computing to identify and exploit each user’s behavioral vulnerabilities makes it worse, the lawsuit claims.
Genius Sports is named because it serves as the sole supplier of the NFL’s official live data and statistics to online sportsbooks. By its own description, Genius Sports powers over 98% of the legalized US sports betting market with that NFL data.
In a separate update, on March 13, Benchmark analyst Mike Hickey maintained a Buy rating and $10 price target on Genius Sports. The decision followed a new US regulatory development that directly reinforces the company’s core business model.
The analyst stated that the trigger was a March 12 advisory from the CFTC that recommended that designated contract markets use official data provided by sports leagues or governing bodies as the settlement source for sports event contracts. This means that data is verified and authenticated at the source and not aggregated from third parties. Hickey described this as a move that “formalizes regulatory preference around official feeds as manipulation-resistant benchmarks.”
Genius Sports Limited (NYSE:GENI) is a sports data and technology company. It provides data collection, distribution, and integrity services to sports leagues and betting operators. Its offerings include live data feeds, video streaming, and digital marketing solutions.
While we acknowledge the risk and potential of GENI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GENI and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Robinhood Stocks with High Potential and 15 Best Forever Stocks to Buy Now.
Disclosure: None. Follow Insider Monkey on Google News.
