What DraftKings and FanDuel Prediction Market Plays Mean for the Sports Betting Biz

FanDuel and DraftKings, two titans of the sports betting industry, launched their own prediction markets in 2025 to compete with emerging leaders like Polymarket and Kalshi. Despite their entry, analysts from Bank of America expressed concern that they may be too late to make a significant impact. The prediction market volume has surged to over $2 billion weekly, with projections suggesting a market size of $95.5 billion by 2035, growing at an impressive rate of 46.8%. This growth has led to tensions between federal and state regulators regarding licensing and oversight of these platforms, which could threaten existing licenses for established sportsbooks. As the market expands, recent scandals within professional sports gambling have raised questions about the integrity of betting practices. While FanDuel partners with CME to offer event contracts, DraftKings has taken steps to avoid cannibalizing its existing offerings while planning to launch a predictions mobile app. State authorities are increasingly wary, arguing that such moves could jeopardize regulatory compliance. These developments indicate a shifting landscape where established operators must navigate increasing competition and scrutiny in the prediction market space.

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