FanDuel launched sports event contracts in 18 US states through its FanDuel Predicts app, the company said. The app is available nationwide, but 32 states do not have its sports markets; FanDuel said it would avoid offering those contracts where it already operates a sportsbook.
FanDuel offers sports event contracts in some states while withholding them where it already operates a sportsbook.
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A bipartisan group of 41 state attorneys general urged the CFTC to confirm that states, rather than federal regulators, have authority over sports-related event contracts. In a formal comment on proposed prediction-market rules, the coalition argued that these contracts function as gambling and should fall under state regulation.
Crypto.com stopped offering its sports event contracts in Arizona on 12 December and cancelled them in Michigan, Maryland, Massachusetts, Illinois, New Jersey, Nevada and Ohio, according to the report. The company is not offering any services in New York; contracts remain available in other states. Arizona's Department of Gaming had issued Crypto.com a cease-and-desist letter, the report said.
Reportedly, DraftKings is increasing prediction market advertising in some of the largest US markets without legal sports betting. The campaign push comes ahead of the NFL season starting on 9 September.
Flutter CEO Peter Jackson said company data give it confidence that prediction markets are not reducing sports betting in states with regulated online sports wagering. He cited FanDuel’s Missouri launch, where one in 20 residents signed up during its first month, and said broader product choice was one reason bettors favour sports betting.
DraftKings was reported to be preparing a prediction-market product for launch in December or January, limited to states without online sports betting. Truist analyst Barry Jonas said company leaders expected the product to have shorter payback periods and higher margins than online sports betting, with limited promotional allowances.