FanDuel launches prediction market platform in five U.S. states without legal sports betting

FanDuel on Monday launched its prediction market platform, FanDuel Predicts, in five U.S. states that do not permit online sports betting, as major gambling companies expand into event contracts amid growing regulatory scrutiny.

The rollout, part of what the company described as a “phased national rollout,” makes FanDuel Predicts available in Alabama, Alaska, North Dakota, South Carolina, and South Dakota. FanDuel said additional state launches are planned in the coming weeks and into 2026.

The platform is operated through a partnership with CME Group, which said non-sports event contracts will ultimately be available nationwide.

FanDuel Predicts offers sports-related event contracts in states without legal online sports betting, excluding tribal territories. The platform covers sports including baseball, basketball, football, and hockey. FanDuel said it will stop offering sports event contracts in any state that later legalizes online sports wagering.

Beyond sports, the platform will offer event contracts tied to financial benchmarks and economic indicators, including equity indexes such as the S&P 500 and Nasdaq-100, commodities including oil, gas, and gold, cryptocurrencies, and data releases such as GDP and CPI. CME Group said these non-sports contracts will be available in all 50 states.

FanDuel said the initial five-state launch will be used to assess customer engagement and inform its expansion strategy. “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,” said James Cooper, a vice president at FanDuel.

“We’re giving our customers a new platform to engage with the world around them — whether that’s the next Fed rate decision or a sports event,” Cooper added.

FanDuel Predicts is offered as a standalone mobile app on the Apple App Store and Google Play. Users must complete know-your-customer (KYC) verification, including providing a date of birth, Social Security number, and government-issued identification. Event contracts are priced between $0.01 and $0.99, with users selecting “yes” or “no” on whether a specific outcome will occur.

FanDuel said it will extend its sportsbook responsible gaming and consumer protection tools to the prediction market platform, including deposit limits, alerts, and self-exclusion, as well as access to mental health resources through Kindbridge Behavioral Health.

The launch comes as competition intensifies in the prediction markets sector. FanDuel, the largest online sports betting operator in the United States, operates in 23 states and ranks first or second by market share. The company reports more than 12 million users.

Analysts have cited FanDuel alongside DraftKings, Kalshi, Polymarket, and Robinhood as potential long-term leaders in the space.

The expansion is taking place as sports-related event contracts face heightened regulatory scrutiny. The Commodity Futures Trading Commission (CFTC) has not formally approved such contracts but has allowed exchanges to self-certify new products, creating a legal gray area. 

Several states have warned they may revoke sports betting licenses for companies that offer sports event contracts, following Arizona’s decision to revoke Underdog’s fantasy sports license after its move into prediction markets.