FanDuel launching prediction markets app to target non-sports betting states
FanDuel will be joining the expanding arena of prediction markets, launching an app next month that will allow users to wager on everything from politics to economics — and even sports.
The twist is that all sports markets will only be available in states where online sports betting isn’t yet legal.
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The separate app, called FanDuel Predicts, marks a shift from the company’s August announcement of its prediction-market plans, which initially skipped sports altogether.
Now, major professional sports contracts are on the table — but only for residents in big non-sports betting states such as California, Texas and Georgia. Sports trading will be blocked on tribal lands, and once a state legalizes online sports betting, those contracts will disappear.
FanDuel said the app will include safety tools to help users monitor risk and make smarter trades.
This move allows FanDuel to dip into the fast-growing prediction-market space while keeping traditional sports betting at the heart of its business.
Until the launch of Missouri sports betting on Dec. 1, 38 states and D.C. currently allow some form of sports betting, but only 30 have online platforms.
The remaining states without any sports betting include Alabama, Alaska, Hawaii, Idaho, Minnesota, Oklahoma, South Carolina, and Utah. Mississippi, New Mexico and North Dakota allow betting but haven’t legalized online options.
FanDuel’s new prediction-market platform will be regulated by the Commodity Futures Trading Commission (CFTC), while its traditional sports betting remains under state-by-state oversight.
DraftKings recently announced plans to roll out its own prediction-markets platform in the coming months, also targeting states where sports betting isn’t legal.
Sports event contracts — tradable financial agreements that let users speculate on the outcome of a sports event — have faced scrutiny for resembling traditional sports betting, with some platforms battling lawsuits over legality.
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