FanDuel already dominates the US online sportsbook scene, but with sports betting still illegal in many states, it’s turning to a fast-growing, and controversial, alternative: prediction markets.
Platforms like Kalshi and Polymarket now handle billions of dollars in weekly bets on everything from sports and elections to weather and even Elon Musk’s posting habits. Because these markets are regulated federally as trading products rather than gambling, they’re available far more widely, putting pressure on traditional betting apps.
To keep up, FanDuel launched its own platform, FanDuel Predicts, offering a similar experience in states where its main sportsbook can’t operate. Backed by CME Group, it’s already live in 16 states, with rivals like DraftKings moving in too.
But the space isn’t without controversy. Prediction markets are facing growing scrutiny over insider trading risks and ethical concerns, especially when bets involve politics or global events, raising questions about how far this new betting frontier should go.
Author: Mohammed Najem