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FanDuel didn’t make much noise about it, but its prediction market product just took a massive step forward. FanDuel Predicts expanded into 13 additional states this week, instantly giving the app a presence in some of the most important markets in the country, including California, Texas and Florida.
That move changes the conversation around prediction markets. What started as a limited rollout late last year now appears to be a serious national strategy aimed at reaching players well beyond traditional sports betting states.
FanDuel Predicts accelerates faster than many expected
FanDuel Predicts launched in December in just five states. At the time, it felt cautious, almost experimental. This latest expansion tells a different story.
The app is now available in 18 states, putting it in front of tens of millions of potential users almost overnight. California, Texas and Florida are the headline additions, mostly because they remain closed or highly restricted for online sports betting. Those states alone represent more than a quarter of the U.S. population, making them especially attractive for any gaming-adjacent product.
FanDuel has also made it clear the rollout is not finished. Its website already says Predicts is “coming soon nationwide,” suggesting more states are likely to follow.
How FanDuel Predicts works
FanDuel Predicts looks familiar to sports bettors, but the mechanics are slightly different. Users buy contracts tied to future events and choose a simple yes-or-no outcome. A correct prediction pays out, while an incorrect one does not.
The menu goes far beyond sports. Contracts can be tied to awards shows, government decisions or broader economic questions, such as interest rate moves. Sports-related markets remain a major draw, covering topics like championship winners and season-long team results.
They sit alongside non-sports options that feel closer to financial trading than traditional wagering.
One notable difference from a sportsbook is the ability to trade contracts before they settle. That feature gives the platform more of a stock market feel than a traditional betting app.
Playing catch-up in a growing market
FanDuel entered the prediction market space later than some competitors. Even with 18 states now live, it still trails DraftKings Predict, which operates in far more jurisdictions.
Both companies rely on data and infrastructure from CME Group to support their offerings under federal commodities rules. DraftKings has indicated it plans to eventually transition to its own CFTC-authorized platform, a move that could further accelerate competition in the space.
Despite arriving later, FanDuel’s brand recognition and reach give it a real chance to close the gap quickly.
Legal uncertainty hangs over prediction markets
Prediction markets remain legal at the federal level under oversight from the Commodity Futures Trading Commission, but that has not stopped states from pushing back. Many state gaming regulators argue that sports prediction contracts look and function too much like sports betting, without the same taxes or consumer safeguards.
Platforms such as Kalshi have responded with lawsuits, challenging states that attempt to block them. The debate has intensified as more high-profile brands enter the space.
CFTC Chairman Michael Selig has suggested the courts may ultimately decide the issue, possibly even at the Supreme Court level. Trade groups such as the American Gaming Association and the Indian Gaming Association have urged Congress to act sooner rather than later.
