Response Confirms Earlier Rumors
Before the two sports betting giants confirmed they would offer the controversial markets, rumors were swirling around their plans.
Both had refused to offer insights into their plans for sports when they announced their foray into prediction markets. However, rumors were swirling around the industry that FanDuel and DraftKings were fully engaged in assessing the fallout. It was suggested that the operators found no real risk, which has now been confirmed.
All Eyes on State Regulators
Several states and tribes have filed lawsuits to ban sports prediction markets within their borders. Those lawsuits are slowly playing out, with both sides earning some key wins. That includes Nevada, where Crypto.com agreed to comply with a court order to exit the market. It was the first time a court has forced an operator to restrict its offerings.
With no legal help coming anytime soon, state regulators will now be under pressure to take action. With several making vague threats to review licenses, they will now need to decide if they actually want to do so.
While it would send a strong message to other operators, it would also remove the sportsbooks used by the vast majority of US bettors. Their former customers could follow them to prediction markets or seek out unregulated sports betting options.
Big Talk Covering Big Concerns?
Leadership from FanDuel and DraftKings has both spoken with great confidence about sports prediction markets. They believe the industry is the future and can co-exist with regulated sports betting. However, there is reason to question whether they are as confident as their words suggest.
Both operators have seen their stock prices slide in 2025. Despite the economy vastly growing this year, FanDuel’s stock price has fallen $61.86 per share, while DraftKings dropped by $7.35. Some of that can be blamed on an unfavorable NFL betting season, which is leading to some significant losses.
Those stock prices have not improved since announcing their prediction markets, which is a concern. If these operators lose even one license, it would deliver a massive blow and could lead more investors to seek out greener pastures.
