FanDuel Aims to Get into Prediction Markets with Possible Kalshi Alliance

The sports betting and real-money casino giant may join Kalshi in the prediction market.

Ziv Chen

Last Updated: June 17, 2025 3:51 PM EDT • 2 minute read

FanDuel Aims to Get into Prediction Markets with Possible Kalshi Alliance — Pictured: The facade of the New York Stock Exchange is decorated to celebrate the listing of Flutter Entertainment. Photo by Richard B. Levine via Imagn Images.

FanDuel might soon enter the prediction market landscape, with talk that the US gambling giant is about to enter a strategic partnership with the prediction platform Kalshi. The collaboration could signal a significant shift in the US gambling industry if it proceeds.

Flutter Entertainment, the parent company of FanDuel, recently acknowledged growing interest in prediction markets. On its Q1 2025 earnings call, Flutter CEO Peter Jackson acknowledged the firm is exploring opportunities in the space.

Jackson added that though prediction markets are not as fun as more popular wagers like parlays, they are interesting business opportunities nonetheless.

Kalshi, regulated by the US Commodity Futures Trading Commission (CFTC), drew national attention in 2023 when it won a court battle against the regulator to allow it to launch markets around U.S. elections.

Early in 2024, Kalshi added sports event predictions to its products, which it markets to users nationwide. The action has been controversial, but states haven't been able to stop them.

Boost for FanDuel?

A deal with Kalshi would enable FanDuel to bypass the conventional state-by-state prohibition on sports wagering. Kalshi's federal regulatory authorization via the CFTC, would enable FanDuel to launch prediction market-based products in all 50 states, covering large, previously unexploited markets such as California, Texas, and Florida.

This would enable FanDuel to grow without traversing new licensing regimes or state-specific levies. Illinois, for example, tacked on a 50-cent fee on sports betting transactions recently. With Kalshi, FanDuel could transition users to federally regulated prediction contracts, which would lower tax costs and enhance operational flexibility.

In addition, FanDuel would be able to take advantage of non-sports betting markets, such as election betting or pop culture.

Although FanDuel, which has a solid foundation of daily fantasy sports (DFS) players, might leverage prediction markets to offer a "sports betting lite" service that attracts new consumers and further solidifies its leadership position.

Kalshi to benefit

Kalshi would also benefit significantly from a partnership. The platform now suffers from a lack of liquidity, which restrains the popularity of its markets. Enrolling FanDuel's over 12 million users could increase participation and market efficiency.

Along with user acquisition, Kalshi may gain from FanDuel's mature front-end user experience, payment infrastructure, and regulatory compliance tools, while implementing these features into its own services.

Yet any partnership will be influenced by current legal disputes. As Kalshi launched sports-based predictions, regulators in Arizona, Maryland, Nevada, and New Jersey responded with cease-and-desist letters.

Kalshi fought back by suing regulators in several states. Federal judges have already halted enforcement in New Jersey and Nevada, giving Kalshi early wins.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.