The prediction markets war just got a whole lot more interesting. FanDuel officially launched FanDuel Predicts on December 22nd, dropping into five states just days after DraftKings rolled out its own prediction platform across 38 states.

The Quick Hit

• What happened: FanDuel Predicts is now live in Alabama, Alaska, South Carolina, North Dakota, and South Dakota
• The competition: DraftKings launched in 38 states on December 19th
• The backend: Both platforms use CME Group exchanges to clear trades — meaning identical market pricing
• Why you should care: Prediction markets are now available in states where sports betting isn't legal

A Different Rollout Strategy

DraftKings went aggressive, launching in 38 states including massive markets like California, Texas, and Georgia. FanDuel took a more measured approach with just five states at launch.

The five states FanDuel chose aren't random. They're all states where traditional sports betting remains illegal, giving the company a chance to build a customer base in markets they couldn't otherwise touch. Smart play.

Both platforms operate through CFTC-regulated exchanges, which is how they're skirting state gambling laws. They're selling "event contracts" rather than traditional bets — a distinction that matters legally even if it feels like splitting hairs when you're betting on whether the Chiefs cover.

Same Markets, Same Prices

Here's where it gets wild: both FanDuel and DraftKings are using CME Group's exchange infrastructure. That means the exact same contracts with the exact same pricing could theoretically appear on both platforms.

The apps themselves will compete on user experience, promotions, and brand loyalty. But the underlying product? Basically identical.

The Bigger Picture

Two weeks ago, both companies quit the American Gaming Association over this exact issue. The AGA opposes prediction markets, viewing them as unregulated competition. FanDuel and DraftKings apparently see them as the future.

Meanwhile, traditional sportsbook operations continue in regulated states. These companies are now running parallel betting ecosystems — one regulated by gaming commissions, another by financial regulators.

Arizona already stripped Underdog of its fantasy license over prediction market ties. Connecticut just issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com. The regulatory fights are just beginning.

The Bottom Line

FanDuel joining DraftKings in the prediction markets space confirms this isn't a side experiment — it's the next front in the sports betting wars. If you're in a state without legal sports betting, you've now got two major operators offering what amounts to the same action through a different legal framework. Whether regulators let this continue is a whole other question.