Flutter Plans to Launch Regulated Prediction Markets This Winter

Flutter is inching closer to setting up one of the biggest showdowns in the history of US sports betting.

The company has stated it plans to offer prediction markets on FanDuel Sportsbook by the end of the year. A partnership with CME Group to help operate the new offering. Flutter had announced plans to launch prediction markets, focusing on US economic indicators, but has not publicly confirmed plans to expand into sports. 

FanDuel’s launch will give it a significant edge over the rest of the sports betting industry, including top rival DraftKings. The Massachusetts-based sportsbook has been looking to enter the emerging industry but has failed to secure a partnership. 

Underdog is the only other US sportsbook to offer prediction markets, thanks to a partnership with Crypto.com. However, the DFS giant only has its sportsbook live in North Carolina, making them one of the smallest operators in the sports betting industry. 

Several states have warned sportsbooks against offering sports prediction markets. They have warned operators that their state DFS or sportsbooks licenses could be revoked if they choose to provide these controversial markets anywhere in the US.

No official launch date has been set for FanDuel’s new prediction market platform. 

Showdown Over Sports is Likely Coming

While Flutter has not confirmed plans to launch sports prediction markets, they have also not denied its interest. The lack of denials has fueled rumors, which are suddenly looking far more credible.

According to Barry Jonas of Truist, FanDuel is actively planning to launch sports prediction markets as soon as this year. Flutter has factored in the potential fallout, which could include an end to their dominance over the US sports betting market. The operator either believes that sports prediction will overtake the sports betting industry in the US or that states will back down from their threats.

Flutter’s confidence in prediction markets is strong, but should it be?

The industry has been facing an endless slew of lawsuits from states and tribal gaming groups. They are challenging the legality of the industry and pushing to allow states to regulate it. While the White House has deep ties to the prediction markets, the Commodity Futures Trading Commission has mostly remained silent. 

The regulator sent an advisory note to operators, warning that they may need to begin exiting some US markets. While that could change once the White House finds a nominee to take over, it shows that the CFTC may not be the industry ally that many operators thought.