FanDuel Keeps Pace By Offering Prediction Market Product

At some point in the next year or two, the Supreme Court will likely decide the fate of prediction markets offering trading on sports and other events. In the meantime, major sportsbook operators are taking the pre-emptive action of trying to compete with Kalshi and Polymarket.

For example, FanDuel launched FanDuel Predicts, a product now offered in 16 states, in December. DraftKings is offering a similar product.

It’s an effort to be ahead of the curve, if prediction markets ultimately get the judicial green light to continue operating.

Prediction Markets

Expanding Horizons

FanDuel and others have two major reasons to get into the prediction market business. As noted above, the first is to compete with products such as Kalshi and Polymarket. Those two are currently dominating the prediction market space, operating under more favorable federal regulations, while sportsbooks operate under more stringent state rules and regulations.

The second reason, as noted in a recent CNN article, is to offer a product in states where online sports betting remains illegal. Prediction markets are a workaround to that obstacle.

FanDuel president Christian Genetski told CNN’s Clare Duffy that FanDuel Predicts allows for a “reasonable facsimile” of a more conventional sportsbook.

“It’s not the full panoply of everything you can do on the FanDuel sportsbook,” Genetski said. “But it provides you a way to experience a FanDuel-type sports experience.”

That said, in states where FanDuel Sportsbook has online betting, FanDuel Predicts won’t allow trading on sports events. There are markets for real-world futures outcomes in areas such as finance and pop culture.

Staying Ahead of the Regulators

There’s a third reason for prediction markets, as well, and it’s equally as important as the first two.

State regulation of sports betting certainly has a plethora of positives. However, one negative is that in many states, legislators continue to go to the well of raising current taxes or imposing new levies on sports betting operators.

Prediction markets aren’t subject to the constantly changing whims of state governors and legislators.

The CNN report addressed that issue via insights from Peter Jackson, CEO of Flutter, the parent company of FanDuel. In FanDuel’s year-end financial report for 2025, Jackson said:

FanDuel Predicts “enables us to harness a significant and incremental expansion of the US addressable market ahead of further state regulation — a space where our scale and experience give us a natural advantage.”