FanDuel, DraftKings Confirm Plans to Launch Sports Contracts

The showdown between the nation’s two largest online sportsbooks and state regulators has officially begun.

Last week, DraftKings Sportsbook announced that it is expecting to offer sports contracts. They told investors they plan to launch sports prediction markets in many states that don’t currently offer legal online sports betting. They ensured they still treasure their relationships with regulators, which is why they won’t launch the new offering in states with legal markets.

FanDuel Sportsbook also addressed its upcoming prediction platform in a press release last week, confirming the December launch will include sports contracts. 

“Subject to appropriate regulatory filings, the app will provide access to sports event contracts across baseball, basketball, football, and hockey,” the release read. “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. As new states legalize online sports betting, FanDuel will cease offering sports event contracts in those states.”

FanDuel also addressed problem gambling and promised to make its industry-leading tool available on its new prediction platform. 

Nevada Pulls Applications, Will Others Follow?

As promised, the Nevada Gaming Control Board (NGCB) announced it was dropping applications from FanDuel and DraftKings to offer sports betting in Nevada. While neither operator expected to be approved anytime soon, the move fulfills a promise regulators made when the two industry giants expressed interest in sports prediction markets.

Now, several other states will face a similar choice. Regulators in states like Arizona and Michigan have promised to review sports betting licenses for any operators that offer sports contracts in any US market. With FanDuel and DraftKings now challenging those warnings, regulators will need to decide if they are willing to back them up.

While stripping the two operators of their sports betting revenue will hurt, states could end up hurting themselves more. FanDuel and DraftKings own the vast majority of the US sports betting market share, meaning most users would be losing their preferred sportsbook. While other sportsbooks would be available, users could choose to follow the two industry leaders into the world of sports contracts.