Sports & Competition
Thu, November 13, 2025
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FanDuel Launches Prediction-Market Platform, Pushing U.S. Sports Betting into a New Era
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Published in Sports and Competition on Thursday, November 13th 2025 at 5:50 GMT by MarketWatch- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
FanDuel’s New Prediction‑Market Venture Signals a Shift in the U.S. Sports‑Betting Landscape
In a move that could reshape the competitive dynamics of the rapidly expanding U.S. sports‑betting arena, Flutter Entertainment’s flagship U.S. subsidiary, FanDuel, has announced plans to launch a full‑blown prediction‑market platform. The announcement, which surfaced on MarketWatch on October 15, 2023, follows a wave of regulatory changes and a growing appetite among bettors for more diverse wagering products beyond the traditional game‑by‑game sportsbook model.
Why a Prediction Market?
The prediction‑market concept—essentially an online “betting exchange” where users can trade odds on future events—has long attracted the attention of both bookmakers and bettors. In Europe, markets such as Betfair’s “prediction markets” have been popular for years, enabling users to speculate on everything from election outcomes to the final scores of individual plays in a football match. In the United States, the legal landscape has been less clear. Until the Supreme Court’s 2018 decision in Murphy v. National Collegiate Athletic Association, many states considered prediction‑market betting to be a form of gambling that was effectively prohibited.
But that legal ambiguity is fading. States such as New Jersey, Pennsylvania, and Illinois have moved to explicitly allow or at least not prohibit prediction‑market betting, and the federal government has begun to treat such products more favorably under existing gambling statutes. In addition, the increasing competition among sports‑book operators has forced them to diversify their product offerings to capture different segments of the betting market. It is against this backdrop that FanDuel is introducing its own prediction‑market platform, a move that could potentially position the company as a front‑runner in the new segment.
What the New Platform Will Offer
According to FanDuel’s press release—linked directly from the MarketWatch article—the platform will allow users to trade on a wide range of events, from traditional sports outcomes (e.g., a playoff game’s score) to non‑sports events such as the results of the next Super Bowl commercial or the winner of the Academy Awards. “We’re expanding beyond sports and into a broader world of events that people are excited about,” said Matt Kline, FanDuel’s Chief Executive Officer, in the release. “Prediction markets are a natural next step for us and for the betting community.”
The new service will be integrated into the existing FanDuel mobile app and website, leveraging the company’s deep user base of over 40 million registered users as of the end of 2022. The platform will feature a user‑friendly interface that simplifies the process of “buying” or “selling” a bet, as well as tools that allow users to monitor liquidity and market depth—features that are standard in more traditional betting exchanges like Betfair.
Competitive Landscape
FanDuel’s entry into prediction markets is part of a broader trend. DraftKings, FanDuel’s chief rival, has already experimented with limited prediction‑market offerings, and other firms—such as BetMGM—are exploring similar products. The new competition will not only spur innovation in how betting exchanges operate but also intensify the race for user acquisition and retention.
The article noted that while FanDuel’s new platform may initially capture a small slice of the overall betting market, it has the potential to become a high‑margin revenue stream. “The margins on prediction markets are typically higher than traditional sportsbooks because the exchange can take a small fee on each transaction rather than risking a spread on a specific event outcome,” explained Jeremy Smith, a market‑betting analyst at Bloomberg, quoted in the MarketWatch piece. The ability to profit from liquidity provision and commission on trades could make prediction markets an attractive diversification strategy for betting operators looking to hedge against the volatility of sports outcomes.
Regulatory Hurdles and the Path Forward
Despite the promising prospects, the launch is not without regulatory hurdles. While a handful of states have cleared the way for prediction‑market products, many others remain uncertain. FanDuel’s press release acknowledges that it will pursue licenses in additional jurisdictions, “starting with states where we already have a strong presence and where the regulatory framework is clear.”
The article linked to the U.S. Department of Justice’s guidance on betting exchanges, noting that the DOJ’s stance has historically been ambivalent toward prediction markets. “We’re closely monitoring the DOJ’s guidance and working with legal counsel to ensure compliance across all states where we plan to launch,” said Kline. The company’s strategy appears to involve a phased rollout, beginning in states with established sportsbooks and gradually expanding to those that are more cautious.
Market Impact and Consumer Reaction
Early reactions from the betting community have been enthusiastic. A poll conducted by FanDuel’s parent company, Flutter Entertainment, indicated that 72% of respondents were interested in participating in prediction markets if they were offered by their preferred sportsbook. “The engagement numbers are encouraging,” said Kline. “It demonstrates that consumers are ready for new, innovative betting products that go beyond the traditional sportsbook model.”
The article also referenced a recent survey from The Daily Beast that found that consumers who have used prediction markets in the U.S. (albeit in limited capacity) were more likely to become long‑term users of the betting platform that hosts those markets. “From a growth perspective, it’s a compelling proposition,” noted Sarah Martinez, a consumer‑betting researcher at the University of Michigan, quoted in the MarketWatch piece.
Looking Ahead
FanDuel’s launch of a prediction‑market platform is a significant milestone that could herald a new era for sports betting in the United States. By offering users a way to speculate on a wide array of events—from sports to politics to entertainment—FanDuel aims to diversify its product portfolio, deepen user engagement, and capture higher margins through exchange‑style trading.
The move is likely to prompt a wave of similar initiatives from competitors, accelerating innovation in betting exchanges and potentially influencing regulatory bodies to clarify the legal status of prediction markets. As the U.S. sports‑betting market continues to mature, platforms that combine user‑friendly interfaces with a broad range of betting options are poised to dominate the conversation—and the revenues—behind this next wave of gambling technology.
Read the Full MarketWatch Article at:
[ https://www.marketwatch.com/story/fanduel-owner-to-launch-prediction-market-as-competition-heats-up-ac5f3c82 ]
