FanDuel Begins Rollout of New Pick‘em Games in Five States

FanDuel Sportsbook is entering the peer-to-peer betting market.

The industry leader has rolled out its new pick’em game to its fantasy offerings in five states. The new game will be available to a select number of users as FanDuel tests its latest offering.

FanDuel’s pick’em game will offer customers the chance to pick a handful of players and wager on whether their stats will be above or below the pre-determined total.

The new pick’em game is currently live for some users in Alabama, Arkansas, Minnesota, Oregon, and Wisconsin. These states have not legalized sports betting, but they do allow for daily fantasy sports platforms. Since the new game involves players betting against each other instead of the house, they don’t fall into the category of gambling.

The launch of pick’em games will help FanDuel keep its lead in a growing DFS market. DraftKings, PrizePicks, Betr, and Underdog all offer peer-to-peer betting on their platforms, which has given them a critical edge over FanDuel. If FanDuel’s new offering succeeds in the five markets it has launched in, it could erase that edge.

FanDuel Sportsbook could also get a boost, with DFS players using the platform when in states where sports betting is legal.

FanDuel Pushes Ahead Despite Controversy

FanDuel has decided to unveil its new pick’em games during a controversial time. Lawmakers across the country have begun to call for a crackdown on DFS sites. While customers aren’t betting against the house, opponents argue that it should still qualify as sports betting.

Another factor angering some states is that DFS sites are not subject to the high tax rates that the sports betting industry is. That means the state is missing out on revenue, some of which is used to fund programs for problem gambling.  While we don’t know the impact of DFS on the growing number of gambling addictions, many believe these pick’em games will further fuel the problem.

The country is also seeing the rise of sports prediction markets, which are another way for bettors to make wagers without needing a regulated sportsbook. Many lawsuits have been filed over these controversial markets, but all parties anxiously await a final ruling from the Commodity Futures Trading Commission.