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High Roller Gives and Takes as Investors Search for Prediction Market Stocks

Tuesday's noon trading saw a roughly 30% decline in High Roller Technologies (NYSE: ROLR) shares following the online casino operator's announcement of a $25 million stock sale.

The business, which is situated in Las Vegas, stated that it is selling 1.89 million shares of common stock at a price of $13.21 per share. However, the stock has continued to struggle today, trading as low as $11.50 after beginning at $13.90 and reaching as high as $15.60. Over 1.71 million shares have exchanged hands as of this writing, putting High Roller stock on track to easily surpass its daily average volume of 1.88 million shares.

"The gross proceeds of the offering will be approximately $25 million, before deducting the placement agent’s fees and offering expenses. The Company intends to use the net proceeds from the offering for sales and marketing, geographic expansion, product development and diversification and for working capital and general corporate purposes,” according to a statement issued by the iGaming company.

With a $143.44 million market valuation, High Roller's announcement of the $25 million share sale probably alarmed nervous investors. Due to the dilution of shareholders, stock sales usually create a short-term reduction in the equity of the selling company.

A Wild Ride for High Roller Stock in 2026

Just one month into the year, High Roller has already taken traders on a wild ride. The stock started 2026 at about $2 and rose to almost $24. Since then, the stock has been halved.

A 688% gain on January 14 was responsible for a large portion of that rally. Some traders began to see High Roller through the prism of event contracts after the company announced that day that it was partnering with Crypto.com on prediction markets.

“We’re thrilled to bring High Roller to the USA through this strategic partnership with Crypto.com,” said  High Roller CEO Seth Young in a press release. “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.”

The operator of the High Roller and Fruta online casino brands, High Roller, reduced the amount of their initial public offering (IPO) the month before and went public in October 2024.

Investors Are Hurrying to Locate Stocks in Prediction Markets

Although it is yet unclear how much of the prediction markets High Roller is exposed to and how much money it can make from that market, it is evident that market players are eager to work with businesses that have event contracts.

Purity is the problem. While some of the publicly traded market participants, including Robinhood Markets (NASDAQ: HOOD), are diverse financial services companies rather than specialized yes/no exchange operators, Kalshi and Polymarket are still privately held businesses. Similarly, two new prediction players, DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT), are probably only going to account for a small portion of those operators' revenue in the foreseeable future.

Even while it isn't a direct wager on prediction markets, those elements help to explain some of the fervent enthusiasm for High Roller stock.