FanDuel Predicts Goes Live Nationwide With Markets Across 18 Sports

Getting in on the action just got a whole lot easier for fans across the country.

FanDuel, the top U.S. gaming company, officially went live with prediction markets nationwide on January 15, 2026. While the app is available nationwide, sports event contracts are currently offered in 18 of those jurisdictions.

The platform, called FanDuel Predicts, is a standalone app that isn’t tied to the operator’s usual sportsbook or iGaming platform. It first went live just before Christmas 2025, offering sports, finance, economics, and commodities markets in Alabama, Alaska, North Dakota, South Dakota, and South Carolina.

This mid-January, FanDuel expanded its sports contracts into 13 new states. Ten of those, including California and Texas, do not offer legal sports betting, making this a significant move for fans in those areas.

Major Markets Without Traditional Betting Access

FanDuel’s expansion is a game-changer for people living in the country’s most populated states, where traditional sportsbooks are still off-limits. Even though California voters turned down sports betting back in 2022, residents can now legally trade sports outcomes through the FanDuel Predicts app. It’s a similar story in Texas, another massive market that has yet to legalize standard betting.

This move gives FanDuel a fresh footprint in Florida, where the Seminole Tribe’s Hard Rock Bet currently holds a monopoly. It also marks a major entry into Georgia, where sports betting legislation has repeatedly stalled.

By launching here, FanDuel is playing a smart long game. They are building brand loyalty and securing customer relationships now, long before these states potentially open up to traditional sportsbooks. It allows them to compete in high-traffic regions that were previously unreachable, positioning themselves as the go-to name for whenever the laws eventually shift.

Regulatory Framework and CFTC Oversight

FanDuel Predicts is registered with the Commodity Futures Trading Commission (CFTC), which sets it apart from typical state-regulated gambling. By partnering with the CME Group in 2025, FanDuel gained the federal legitimacy needed to offer these markets. However, a major debate remains: are these sports “event contracts” actually legal? It’s a question that might not be answered for years.

While multiple operators like Kalshi have sued states that tried to shut them down, the legal battle continues to intensify. At the same time, state gaming regulators largely agree that trading sports predictions is simply another form of sports betting. This allows prediction markets to operate without the same taxes or consumer protections required of licensed sportsbooks.

The new CFTC Chairman, Michael Selig, plans to let the courts decide the matter and expects it to reach the Supreme Court, a process that could take three years. To prevent this delay, the American Gaming Association has asked Congress to ban these markets through upcoming crypto legislation. They argue that “regulatory inaction” has allowed these platforms to grow too fast.

Legal Challenges Facing the Sports Betting Industry

The rapid expansion of sports betting has brought intense legal scrutiny. FanDuel and its competitors are currently navigating a complex landscape of legal challenges that question their core business practices.

For instance, the city of Baltimore recently sued FanDuel’s parent company, alleging that it used deceptive tactics and exploited vulnerable gamblers by collecting data. A significant focus of the FanDuel lawsuit is on gambling addiction. 

According to TorHoerman Law, what started as entertainment on FanDuel turned into a costly habit that many couldn’t break. Across the country, legal claims allege that specific design choices and messaging drove users toward higher-frequency wagering and severe financial harm.

People say the app lured them back using bonus bets, “risk-free” offers, and VIP rewards that made constant gambling seem normal. Many claimants describe patterns that escalated over time, such as placing larger wagers and chasing losses. 

Competition in the Prediction Markets Space

FanDuel is entering a crowded prediction market scene alongside heavy hitters like Robinhood and DraftKings, which launched its own “Predictions” platform recently. 

According to KPMG, these markets truly burst onto the American scene in late 2024. 

Their use expanded rapidly after Kalshi, a federally regulated exchange, successfully sued the CFTC. This victory allowed them to offer contracts on political outcomes, such as the 2024 presidential election.

Since that legal win, these markets have grown to include everything from climate to sports. This has created a massive opportunity, especially in states where traditional betting isn’t legal. Operators like Fanatics were quick to jump in, becoming the first iGaming firm to offer these markets in late 2025. 

However, this rapid growth has drawn plenty of regulatory heat, with many industry groups now calling for federal intervention to finally clarify the rules of the game.

Frequently Asked Questions

How is FanDuel Predicts different from FanDuel Sportsbook?

FanDuel Predicts is a standalone app regulated by the federal Commodity Futures Trading Commission, offering prediction markets on sports, finance, and commodities. It operates separately from FanDuel Sportsbook, which requires state gambling licenses and is unavailable in many states.

Can California residents use FanDuel Predicts for sports markets?

Yes, California residents can access sports prediction markets through FanDuel Predicts despite the state’s ban on traditional sports betting. The platform operates under federal CFTC regulation rather than state gambling laws, though this regulatory framework faces ongoing legal challenges.

What are the main legal concerns surrounding FanDuel and sports betting platforms?

FanDuel faces lawsuits alleging deceptive marketing practices, inaccurate data provision, and exploitation of vulnerable gamblers. State regulators also argue that prediction markets function as unregulated sports betting, avoiding required consumer protections and tax obligations that licensed sportsbooks must meet.

As FanDuel Predicts rolls out across the country, it marks a major shift in how Americans engage with both sports and the economy. By leveraging federal oversight, FanDuel has found a way to enter massive, untapped markets like California and Texas, effectively bypassing traditional betting bans.

However, the road ahead is far from certain. With state regulators, tribal leaders, and gaming associations pushing for a total ban, the industry is headed for a high-stakes legal showdown. 

Whether “event contracts” are seen as financial tools or just another form of gambling is a question the Supreme Court may ultimately decide. For now, the “prediction boom” is here, but the final rules of the game are still being written.