FanDuel Marks Prediction Market Entry with Launch in Five States

Just days after DraftKings launched its prediction markets, FanDuel Predicts has followed suit, launching in five states. 

The newest entry into the world of prediction market apps enables users to purchase event contracts on the outcomes of cultural, political, and sports events, providing FanDuel access to states where it was previously unable to operate due to state gambling laws. 

Certified under the CFTC, prediction markets have been expanding in recent months, as they can operate across the US, rather than adhering to individual state laws. 

Currently, customers in Alabama, Alaska, South Carolina, North Dakota, and South Dakota have access to the FanDuel Predicts app, with further launches expected across the US in the coming months. 

Its prediction markets are expected to roll out in all 50 states, featuring markets on economic data, commodity prices, and stock indexes. Sports event contracts will be available only in states where online sports betting is not legal. 

In comparison, DraftKings' prediction markets were launched in 38 states on Friday, with sports betting only available in 18 of them. 

Senior Vice President of FanDuel, James Cooper, commented on the launch, saying, “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.”

The launch comes as prediction markets, such as Kalshi and Polymarket, are making waves across the US with their platforms, while traditional sportsbooks attempt to keep up with the industry. 

However, best sports betting sites have had to tread carefully with their launches, as some states have threatened their licenses if they begin offering prediction markets for sports. 

FanDuel abandons the AGA

In the lead-up to its prediction markets launch, FanDuel left the American Gaming Association, the trade organization that represents sportsbooks, casinos, and gaming manufacturers in the US, citing concerns about the direction of online betting. 

The AGA has consistently opposed the prediction market industry's involvement in sports betting. It has proposed a resolution to exclude memberships from sportsbook operators, according to people familiar with the matter. 

Regarding its departure, a FanDuel spokesperson told CNBC, “We recognize this direction is not aligned with the American Gaming Association’s current priorities for its member operators. After thoughtful consideration, we have decided to step back from our AGA membership at this time.”

At the same time, DraftKings also resigned from the AGA, stating, “As the company’s business strategy evolves—including with prediction markets—DraftKings determined that its plans no longer fully align with the AGA’s direction in certain areas and have decided to relinquish its membership.”

While both FanDuel and DraftKings have left the AGA, they are still represented by the Sports Betting Alliance, which provides sports betting operators with lobbying and outreach.