FanDuel makes a cautious entry into prediction markets.

FanDuel has officially entered the US prediction market space with the launch of FanDuel Predicts, several days after rival DraftKings unveiled its own platform. Unlike DraftKings’ nationwide approach, FanDuel is adopting a measured rollout, initially launching in Alabama, Alaska, South Carolina, North Dakota, and South Dakota. The company confirmed plans for phased expansion early next year but declined to identify additional states.

The new platform has launched in partnership with CME Group, one of the world’s largest derivatives exchanges. FanDuel Predicts will be available via the Apple App Store and Google Play, with customers required to complete full Know Your Customer verification. FanDuel CEO Amy Howe described the launch as the result of coordinated efforts across product, legal, and operational teams.

FanDuel joins DraftKings and Fanatics as sportsbooks testing prediction markets as a complementary vertical to traditional betting. Industry analysts believe the legality of sports event contracts will be decisive, with potential federal court challenges ahead. Truist Securities noted that FanDuel and DraftKings are well positioned to lead the sector if prediction markets survive legal scrutiny, while a ban could force a return to conventional sportsbook strategies.

FanDuel Predicts will offer contracts tied to financial benchmarks such as the S&P 500 and Nasdaq-100, commodities, cryptocurrencies, and economic indicators. Sports-related contracts will be available only in states without legal online sports betting and will be withdrawn once betting is authorised.

Under the revenue-sharing agreement, CME Group will receive 50% of gross revenue, while FanDuel absorbs operating costs. Flutter Entertainment expects fourth-quarter EBITDA costs of $40m to $50m. Despite short-term financial pressure, analysts project prediction market trading volumes could reach $1 trillion annually by decade’s end.