FanDuel introduced FanDuel Predicts last year in partnership with CME Group, offering a derivatives-based prediction market platform now accessible in 16 states where sports betting may be restricted. The app provides odds determined by market demand rather than operator setting, replicating core sportsbook features outside traditional state regulations.

Prediction markets fall under federal Commodity Futures Trading Commission jurisdiction as trading products rather than state-regulated gambling, allowing nationwide availability. This framework lets users wager on diverse events—from election outcomes to weather patterns—without needing individual state licenses for each activity.

Platforms like Kalshi and Polymarket facilitate billions of dollars in weekly bets, underscoring the segment’s rapid growth and potential to divert volumes from traditional sportsbooks. FanDuel aims to tap this demand to expand its addressable US market prior to further state-level sports betting approvals.

DraftKings launched its own prediction market last year in response, signaling intensifying rivalry in capturing users migrating to federally regulated platforms. FanDuel’s core sportsbook, averaging 4 million monthly users across 25 states, remains its priority business, with Predicts serving as incremental growth driver.