DraftKings and FanDuel officially entered the prediction market space this winter, and the numbers from the first month are staggering. DraftKings Predictions reported over $120 million in trading volume, largely driven by integration with their existing ecosystem.

The Quick Hit

• What happened: DraftKings Predictions hit $120M volume in first month
• The damage: FanDuel launched via CME Group partnership on December 22
• Why you should care: Prediction markets are the new battleground
• The move: More betting options = more degeneracy opportunities

How They Got Here

DraftKings fast-tracked its prediction market entry by acquiring Railbird Technologies, a CFTC-licensed exchange, for $250 million in late 2025. That acquisition gave them immediate regulatory cover and a functioning platform to build on.

FanDuel took a different path. Flutter Entertainment's subsidiary launched FanDuel Predicts on December 22, 2025 through a strategic partnership with CME Group. The partnership provides exchange infrastructure and regulatory compliance.

Both platforms are now live and competing for the same degenerates who've been betting sports with them for years.

What You Can Bet On

These aren't traditional sportsbooks. Prediction markets let you trade "event contracts" on political and economic outcomes—things like election results, economic indicators, and major world events.

It's essentially betting on the future without calling it gambling. The CFTC regulates it as derivatives trading, which creates interesting regulatory questions that we've covered before.

The California Problem

A pending decision in the California Supreme Court regarding the "Event Contract vs. Gambling" distinction is expected by late spring 2026. If the court rules against the sportsbooks, they might have to withdraw from one of the world's largest economies.

California doesn't have legal sports betting, so prediction markets were a potential back door into the market. If that door closes, it's a significant blow to expansion plans.

The AGA Exit Fallout

DraftKings and FanDuel left the American Gaming Association following disputes about prediction markets and their legitimacy. The AGA represents traditional casinos that view prediction markets as gambling competition, not innovative financial products.

That split created a clear divide in the industry. On one side, you have the legacy casino operators who want prediction markets regulated as gambling. On the other, you have the sportsbooks arguing they're operating legitimate derivatives exchanges.

What This Means for You

More places to put your money. DraftKings Predictions and FanDuel Predicts are both accessible through their main apps, meaning you can place traditional sports bets and prediction market trades in the same session.

The $120 million volume number from DraftKings suggests plenty of people are already taking advantage.

The Bottom Line

The prediction market war is real, and it's just getting started. DraftKings and FanDuel are betting (literally) that Americans want to speculate on more than just sports. The first month numbers suggest they're right.

Whether regulators agree is a different question. Tennessee already ordered prediction market operators to stop offering sports-related contracts. Other states may follow.

For now, enjoy the expanded betting menu. The sportsbooks aren't going to stop trying to take your money just because the product is labeled differently.