(Dec 23): FanDuel is launching its own prediction-market app in five states just days after its main rival, DraftKings Inc, rolled out a similar product.
FanDuel Predicts will allow users to bet on the outcome of sports, cultural events and financial indicators through a prediction markets exchange, supplementing the company’s current sports betting products.
Prediction markets have taken off in recent months by enabling federally regulated online betting in states that have not legalised online gambling.
The exchanges offer dollar-sized contracts with prices that represent the chance of an event happening, a more intuitive format than the moneylines used by traditional sportsbooks.
The new FanDuel app will initially be available only to customers in Alabama, Alaska, South Carolina, North Dakota and South Dakota, but that will be followed by a phased national rollout.
“This launch in five states will provide valuable insights into customer engagement with this new platform, enabling us to refine our approach as we expand to additional states in 2026,” said James Cooper, senior vice president at FanDuel.
See also: Fed should lower rates if market does well, Trump says
FanDuel’s rival DraftKings said Friday (Dec 19) that it is releasing its predictions markets app in 38 states, though sports are only available in 18 of those states.
FanDuel, the US online gambling division of Flutter Entertainment plc, is launching its app in partnership with CME Group Inc, the derivatives exchange operator. DraftKings said it is also routing its trades through CME, though it has acquired its own derivatives exchange that it will eventually use for trading.
Sports gambling companies are rushing to enter the nascent prediction markets to fend off upstart firms like Kalshi Inc and Polymarket, which pioneered this fresh way to place wagers on the outcomes of events.
See also: Bessent sees room for future revamp of Fed’s 2% inflation target
FanDuel said it plans to offer contracts on economic data, commodity prices and stock indexes in all 50 states. Sports contracts will only be available in states where online sports betting is not yet legal.
Sports betting companies have been expanding carefully because some state regulators have said that gambling companies could lose their licences if they also offer prediction markets tied to sports.
Prediction exchanges are regulated by the Commodity Futures Trading Commission, the federal agency that oversees derivatives markets.
From August to November, shares of both DraftKings and Flutter dropped as investors focused on the possibility that prediction market startups like Kalshi and its rival Polymarket would offer a similar product with fewer regulations and restrictions.
Flutter’s stock is up since it announced that it would release FanDuel Predicts. On Friday, the stock rose as much as 1.7% before ending the day up 0.8%.
Uploaded by Arion Yeow
