If you live in a state without legal sports betting and thought you'd have to sit out Super Bowl action, think again.

FanDuel and DraftKings are about to offer Super Bowl parlays in states where traditional sportsbooks are illegal, thanks to their prediction market platforms. CME Group filed Tuesday to list multi-leg "Pro Football Championship Combo" contracts with the CFTC, and the timing is no accident—Super Bowl LX is eight days away.

The Quick Hit

• What happened: CME filed to offer parlay-style Super Bowl bets on prediction markets
• The damage: Non-betting state residents can now wager on the big game
• Why you should care: The lines between sports betting and prediction markets just got blurrier
• The move: Download FanDuel Predicts or DraftKings Predictions if you're in a non-betting state

How This Works

Here's the deal: CME is a designated contract market (DCM) that operates under federal derivatives law, not state gaming law. That's a fancy way of saying the feds regulate it, not your state's gaming commission.

FanDuel Predicts and DraftKings Predictions act as brokers for CME's contracts. Because these are technically "financial products" and not "sports bets," they can operate in places where DraftKings Sportsbook and FanDuel Sportsbook can't.

DraftKings Predicts currently offers prediction markets in 38 states, with sports contracts available in 17 of those. FanDuel has been more conservative, initially launching in just five states—Alabama, Alaska, South Carolina, North Dakota, and South Dakota.

But both are planning to have Super Bowl combo bets available in non-betting states before kickoff.

Why This Matters

The Super Bowl is the biggest betting event of the year. Player prop bets account for 50-60% of all Super Bowl wagers by ticket count, and parlays make up at least 25% of total handle.

Until now, residents of California, Texas, Georgia, and other non-betting states had two options: illegal offshore books or driving to a legal state. Now there's a third option that's legal, regulated, and available on your phone.

The prediction market explosion we've been tracking just got real for mainstream sports bettors. This isn't about betting on election outcomes anymore—it's about parlay-style wagers on the same games you'd bet at any sportsbook.

The Competition Factor

This move comes days after Robinhood started offering access to Kalshi's parlay bets, becoming the first mainstream broker to accept multi-leg trades. The Kalshi lawsuits haven't slowed the industry down—if anything, competition is heating up.

DraftKings and FanDuel leaving the American Gaming Association makes more sense now. They're not abandoning sports betting; they're expanding it through a different regulatory door.

For states that have held out on legalizing sports betting, this creates an awkward situation. Their residents can now legally bet on the Super Bowl through federally regulated markets while the state collects zero tax revenue. That argument—"they're betting anyway, might as well tax it"—just got a lot more data to back it up.

The Bottom Line

Whether you call it sports betting or prediction markets, the practical effect is the same: more ways to put action on the Super Bowl. FanDuel and DraftKings are expanding their reach without waiting for state legislatures to act.

If you're in a non-betting state and want to get down on Seahawks-Patriots, your options just multiplied. Download the prediction market apps and get familiar with how they work before kickoff. The future of gambling regulation is playing out in real time.