FanDuel, DraftKings exit Nevada to Chase the Prediction Market Dragon

Hold onto your sportsbook hats, because FanDuel and DraftKings are shaking things up bigtime. The two U.S. betting behemoths have officially surrendered their Nevada licenses for the promise of the next shiny thing in gaming: prediction markets.

FanDuel Predict and DraftKings’ Railbird platform are shaping a whole new way to gamble, trade, and speculate, all wrapped into one. Nevada regulators aren’t exactly on board, so the two had to part ways.

Peter Jackson, Flutter CEO, is not particularly bothered. “We’re going to put a lot of money behind it in a disciplined way,” he said in an CNBC interview. And the plan is bold: bring prediction markets to states where sports betting isn’t yet legal, and go after untapped audiences with a $200–300 million investment in 2026.

DraftKings Joins the Hunt

DraftKings is playing the same game. It was the first of the two to make a move, actually.

After acquiring Railbird back in July, a CFTC-registered prediction market platform, the operator is ready to roll out its own line of sports contracts. By that we mean DraftKings Predictions, a mobile app that should allow punters to trade regulated event contracts across sports, finance, entertainment, and more.

Following in its competitor’s footsteps, and only five minutes after the statement on Nevada licence revocation, FanDuel announced an app of its own, called FanDuel Predicts, to be launched in December. The plan is to roll it out in 11 states that don’t have a regulated sports betting market and effectively go after “half the market,” in Jackson’s words. California and Texas have been touted as the primary markets for sports contracts.

Prediction Market Boom

DraftKing and FanDuel joining the fray is signalling that prediction markets are, indeed, the next big thing in iGaming. If you’re unfamiliar with the concept, prediction markets let players buy and sell contracts based on real-world events: sports, politics, crypto, you name it!

If your pick is right, you cash in. If not, you’ve basically sponsored someone else’s payday.

Oh, and prediction markets are totally legal under federal law and regulated by CFTC. That means operators can legally launch in other states and territories, essentially going where the regulators are more relaxed.

Beyond Sports

It’s not just about sports, either. Hollywood, Crypto.com, and even Donald Trump’s Truth Social are already testing these waters, showing there’s an appetite for this kind of prediction game across pop culture, politics, and finance. Crypto.com, for example, lets you buy contracts for Fed Rate cuts, US Tech Index value, as well as 25/26 Premier League winners.

The latest player to enter the arena is MyPrize, becoming the first sweepstakes casino to offer prediction markets. It vowed to integrate prediction markets across sports, politics, and crypto, and stream it all live. Also, Jupiter is about to launch its own version.

The Dragon’s Out of the Cave

So what does this mean for players? More ways to play, speculate, and maybe win big, beyond the standard sportsbook model. Want to bet on your favorite team, the next Fed rate cut, or even the price of crude oil? Soon, you can, even if gambling is not legal in your neck of the American woods.

For operators, it’s a chance to lead the charge in a sector where gaming, social media, and market speculation inevitably collide. Could this trend last? Will too many players flood the markets? Maybe. But one thing’s for sure: the prediction market dragon is out of the cave, and FanDuel and DraftKings are chasing it like it owes them money.

So, the next time you log in, your favorite sportsbook might not just be showing odds. It might be showing you the future.