FanDuel Launches Prediction Market in 16 States, Intensifies DraftKings Rivalry
FanDuel launched prediction market app FanDuel Predicts with CME Group last year and now offers it in 16 states to tap federally regulated trading markets. This expansion leverages FanDuel’s 4 million monthly users across 25 legalized states and creates heightened competitive pressure on DraftKings’ core sportsbook and emerging prediction business.
1. FanDuel Predicts Launch
FanDuel introduced its prediction market app, FanDuel Predicts, last year in partnership with CME Group and has since expanded availability to 16 states, offering event-based trading contracts on sports and political outcomes.
2. Regulatory Structure
Prediction markets operate under federal CFTC oversight as trading products rather than state-regulated gambling, allowing FanDuel Predicts to function in jurisdictions where its sportsbook remains banned.
3. Impact on DraftKings
By leveraging its 4 million monthly users across 25 states, FanDuel’s new platform broadens its addressable market and increases competition for DraftKings’ core sportsbook and its own prediction market initiative.