FanDuel Launches Prediction Platform in Five US Markets

At long last, FanDuel Sportsbook has entered the prediction market industry.

The sports betting leader launched its new FanDuel Predicts platform in five US states this week. It is now live in Alabama, Alaska, North Dakota, South Carolina, and South Dakota. The small markets will allow the operators to test out their new offering, but more markets will likely go live very soon.

Unlike rivals DraftKings and Fanatics, FanDuel is being far more careful with its relationships with states. They only operate in states without mobile sports betting and have promised to drop sports contracts in any states that legalize it. The operator also geo-fences tribal lands, which Kalshi has argued is impossible. 

While sports markets are available, most of the platform will focus on the US economy. That includes stock prices, market trends, oil prices, and more.

FanDuel Predicts was launched as a standalone platform, meaning bettors won’t be able to access it from their sportsbook app. It also included the operator’s robust problem gambling tools, which other operators in the industry have refused to offer. 

FanDuel’s platform is operated through a partnership with the CME Group. 

Sportsbooks Await Fallout From Regulators

While FanDuel has been more respectful of state rights than its rivals, its launch still violates warnings from several sports betting regulators. They had promised to review sports betting and DFS licenses for operators offering sports prediction markets anywhere in the US. 

With FanDuel joining DraftKings and Fanatics in the prediction market space, the industry now awaits regulators' response. While Arizona recently revoked Underdog’s DFS license for prediction markets, no action has been taken against sportsbooks as of yet.

All parties involved are facing massive risks. Regulators fear that punishing the country’s top sportsbooks will lead them to push customers towards their prediction platforms. 

Operators risk a massive revenue hit, as the prediction market industry faces intense bipartisan backlash. Even if it manages to survive unscathed, many bettors are choosing to remain with their sportsbooks, finding prediction platforms daunting.