FanDuel Wins the Race to Expand
Several major sportsbooks have been seeking a way to enter the world of prediction markets, but FanDuel will win the race.
DFS giant Underdog, which has an online sportsbook in one market, was the first to market through a partnership with crypto.com. While they are a rival of FanDuel in the daily fantasy industry, they are not competitive in sports betting.
DraftKings and several other operators have been open about their desire to offer sports prediction markets. However, they have failed to secure the necessary partnerships and licensing to do so.
FanDuel had initially looked to partner with Kalshi, but instead reached a deal with the CME Group.
Sports Markets Could Be Coming Soon
FanDuel has refused to confirm if it will offer sports prediction markets, but rumors indicate those could be coming before the end of the year.
States have begun to warn DFS and sportsbook operators to stay away from these controversial markets. They have promised to review state licenses for those who decide to join the new industry.
There have been some reports suggesting that Flutter has also considered that fallout and determined that sports prediction markets would still be worth adding. If that happens, it could end their dominance over the US sports betting market.
Decision Will Impact the Future of US Sports Betting
FanDuel’s decision over sports prediction markets will have a significant impact on the future of US sports betting.
If the sportsbook decides to risk its state licenses to move forward with sports prediction markets, it will be a massive loss for the industry. FanDuel and DraftKings own over 80% of the US market share, meaning that several million bettors may lose their favorite sportsbook. They could decide to make the switch to prediction markets with FanDuel, possibly leaving the sports betting industry forever.
States would then have the pressure shifted to them as they decide how to handle FanDuel’s change. While they could pull licenses, it would risk damaging their sports betting markets. If they don’t back up their warnings, it would shift the balance of power back towards the operators.
