FanDuel Enters the Prediction Market Space

FanDuel is officially in the prediction market game.

The company today announced the launch of FanDuel Predicts across five states, with a nationwide rollout soon to follow. FanDuel and CME Group plan to rollout the service to additional states in early 2026.

“We’re giving our customers a new platform to engage with the world around them – whether that’s the next Fed rate decision or a sports event,” said James Cooper, Senior Vice President, Flywheel and New Ventures at FanDuel, in a company announcement. “This launch in five states will provide valuable insights into customer engagement with this new platform, enabling us to refine our approach as we expand to additional states in 2026.”

Five State Initial Rollout

FanDuel Predicts is now available in the following five states:

  • Alabama
  • Alaska
  • South Carolina
  • North Dakota
  • South Dakota

FanDuel Predicts will offer event contracts in all 50 states on traditional offerings based on the S&P 500 and Nasdaq-100, prices of oil and gas, gold cryptocurrencies, and other economic indications. Additionally, the company will offer sports event contracts across baseball, basketball, football, and hockey in states where online sports betting is not yet legal.

According to the company, as additional states legalize sports betting, FanDuel Predicts will cease offering sports event contracts in those states.

The new online app is now available in the Apple app store and Google Play and will use the company’s “Know Your Customer” sign-up process, requiring a birth date, social security number, home address, banking information, and a government-issued ID to register an account.

FanDuel Predicts is powered by a partnership between FanDuel and CME Group. DraftKings Predictions is also powered by CME Group.

“CME Group prediction markets will enable a new generation of users to express their views on global benchmarks, economic indicators, sports and more,” saidLynne Fitzpatrick, President and Chief Financial Officer, CME Group. “This launch is a pivotal step for expanding the reach of our products to FanDuel’s millions of registered users across the U.S.”

Days After DraftKings Predictions Launch

FanDuel’s entry into the prediction markets came just three days after DraftKings announced the launch of its own prediction market service, DraftKings Predictions, across 38 states.

The new standalone app and web product allows patrons to trade on real-world outcomes across a wide range of markets, including sports and finance. Sports event contracts are currently offered in 17 states, but not available where DraftKings is licensed to offer sports betting.

DraftKings Predictions is a Commodity Futures Trading Commission registered Introducing Broker and member of the National Futures Association. New categories of outcomes will be added, such as entertainment and culture, moving forward, according to the company.

DraftKings Predictions plans to connect to multiple exchanges, beginning with CME Group at launch, to give customers the widest array of markets, including global benchmarks, economic indicators, and sports contracts. This will also include the planned rollout of Railbird Technologies and its wholly owned subsidiary, Railbird Exchange, LLC, to broad available markets.

DraftKings Predictions offers sports event contracts in 17 states, including California, Georgia, Texas, and Florida.

Sports event contracts are available in the following states:

  • Alabama
  • Alaska
  • California
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Minnesota
  • New Mexico
  • Nebraska
  • North Dakota
  • Oklahoma
  • Rhode Island
  • South Carolina
  • South Dakota
  • Texas
  • Utah

Regulatory Response Remains Unclear

DraftKings and FanDuel’s entry into the prediction markets will likely bring about the attention of state gaming regulatory bodies that have warned license holders to not offer sports event contracts or partner with those who do.

With the country’s two largest sports betting companies now both entering the prediction markets, it remains to be seen if regulators will take any action against their new business plan.

Several gaming commissions, such as those in Ohio, Michigan, Illinois, and New York, have warned sports betting companies that offering sports event contracts – even in other states – could put their licenses at risk.

The Arizona Department of Gaming was the first to take action against a company for a prediction market partnership. The department notified Underdog of its intention to revoke its daily fantasy sports license due to its partnership with Crypto.com, which until early December offered sports event contracts in the state.