DraftKings unveiled its prediction market brand, DraftKings Predicts, a collaboration with the CME Group that will ultimately integrate its Railbird Exchange.
Ready, Set, Launch!
DraftKings’ long-awaited entry into the prediction market was finally realized late last week, and it is active in 38 states. However, DraftKings is only offering its sports event trading in 17 non-sports betting states, such as California and Texas, to name a significant few.
Yet, in the 21 states and Washington, DC, where sports betting is legal, DraftKings will not offer sports event trading contracts. DraftKings Predicts will offer contracts on commodities and other events, but sports will be off limits.
The philosophy behind avoiding sports event contracts in mobile sports betting areas is to maintain cordial relationships with state gaming regulators who have been engaged in a legal battle against prediction markets offering sports event contracts within their boundaries, but without any state license or obligation to pay state taxes.
The industry-leading company, Kalshi, has consistently fought against the cease-and-desist orders it has received from several states. They have successfully argued, thus far at least, that they are licensed by the Commodity Futures Trading Commission, whose authority supplants that of the state gaming authorities.
“FanDuel Predicts” Waiting in the Wings
Now that its major competitors DraftKings and Fanatics have launched their prediction market platforms, all eyes are on FanDuel’s prediction brand, FanDuel Predicts. Like DraftKings, FanDuel’s prediction brand is in partnership with the CME Group and will not roll out its sports event contracts in states that have legalized mobile sports betting within their boundaries.
FanDuel’s parent company, Flutter Entertainment, released the following statement during its Q3 earnings call. “FanDuel Predicts, a new prediction market product which will include sports in states without access to regulated sports betting, to launch in December.”
A Citizens Bank analyst visited FanDuel’s New York City headquarters and wrote in a note for his clientele, “FanDuel Predict(s) will be limited to only several states at launch, with a basic product offering, before launching more materially by the end of the month and reaching offering parity to its comps during (the first quarter of 2026), including pre-packaged combos/ parlays and player props.”
A press release in November offered the following: “FanDuel Predicts will launch in December as a standalone mobile application. Subject to appropriate regulatory filings, the app will provide access to sports event contracts across baseball, basketball, football, and hockey. In states where online sports betting is not yet legal, customers who are not on tribal lands will be able to trade event contracts on the outcome of sporting events.”
