FanDuel wants to carve a sports niche in the controversial prediction market business

FanDuel Enters Prediction Market Arena to Expand Sports Betting Reach

FanDuel, a leading player in the US online sports betting scene, is diversifying its offerings by venturing into prediction markets—a space long debated for its potential risks and societal implications. The company’s core sportsbook app has already established a massive user base, with 4 million monthly active users across 25 states where sports betting is legal. Yet, the challenge of operating in states where online gambling is restricted has pushed FanDuel to explore new avenues.

Prediction markets, which allow bets on outcomes ranging from political elections to weather forecasts, have seen explosive growth. Platforms like Kalshi and Polymarket facilitate billions in weekly trades, drawing both enthusiasm and criticism. While these markets are legally classified as trading products under federal oversight by the Commodity Futures Trading Commission (CFTC), sports betting apps face stricter state-level regulations. This distinction has made prediction markets more accessible, prompting FanDuel to enter the fray.

Earlier this year, Kalshi made headlines by announcing sports betting availability in all 50 states, even those banning traditional sportsbooks. In response, FanDuel launched its prediction market app, FanDuel Predicts, in partnership with the CME Group. The app is now active in 16 states, offering a streamlined version of the company’s sports betting experience. “It’s not the full range of what our sportsbook provides,” said FanDuel’s president, Christian Genetski, during a podcast interview. “But it gives users a taste of the FanDuel brand.”

“We are definitely sports-focused at FanDuel,” Genetski emphasized. “We are a sports brand and a sports company.”

FanDuel’s strategy hinges on leveraging its existing scale and expertise. Peter Jackson, CEO of Flutter, the parent company, noted in the 2025 financial report that the move allows FanDuel to “expand the US addressable market ahead of further state regulation.” The company ensures its prediction app doesn’t compete directly with its core sportsbook, reserving the latter for states where it operates legally.

Despite the allure of prediction markets, they are not without controversy. The White House recently issued a warning to staff about insider trading on platforms like Kalshi, citing risky bets tied to geopolitical events. Meanwhile, FanDuel and DraftKings have already faced scrutiny over gambling addiction and allegations of sports rigging. However, both companies argue their measures mitigate these risks.

While FanDuel Predicts focuses on real-world outcomes such as GDP growth or unemployment rates, it avoids bolder bets involving topics like war or regime change. “We would never offer anything related to death or conflict,” Genetski stated. This approach aligns with the company’s broader mission to cater to sports enthusiasts without straying into contentious territory.