Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to the Morning Minute on Substack.
Sportsbooks are piling into prediction markets.
But are they here to stay? Or is this a temporary workaround?
The new standalone mobile app will be named ‘Fanduel Predicts’ and will allow users to trade event-based contracts, initially covering sports, economic indicators, crypto and more.
This major announcement comes just a few weeks after DraftKings announced its own entry into prediction markets, putting both major U.S. sport-betting brands in the prediction-market race.
🗣️ What They’re Saying
“We can’t wait to bring FanDuel’s proven approach to product innovation into this dynamic sector,” said Amy Howe, CEO at FanDuel. “Our partnership with CME Group allows us to leverage their deep market expertise built over decades while delivering the seamless, accessible and trusted experience our customers expect.”
“Our new event contracts on benchmarks, economic indicators and now sports will appeal to a new generation of potential participants who are not active in these markets today,” said CME Group Chairman & Chief Executive Officer Terry Duffy. “This launch will dramatically expand our distribution and reach, connecting directly with FanDuel’s millions of registered U.S. users.”
🧠 Why It Matters
So DraftKings and now FanDuel are jumping into the prediction market space.
But – are they here to stay?
A notable aspect of FanDuel’s announcement was somewhat buried in the 2nd paragraph –
“As new states legalize online sports betting, FanDuel will cease offering sports event contracts in those states.”
That makes this move feel more like a temporary bridge solution than a permanent one.
An obvious question has arisen this year with Kalshi’s rise in the sports betting rankings – why are prediction markets allowed to offer sports markets in states that DraftKings and FanDuel are banned in (due to sports betting restrictions)?
Well, instead of waiting months or years for that question to be answered, FanDuel and DraftKings are simply going on the offensive and launching their own versions.
Now the next question is – will they stick around once the states issue is resolved? Will they lean into the new “everything app” trend and offer politics, crypto, entertainment and economic markets alongside their bread and butter sports?
Or will they simply revert to sports?
Time will tell. But as for now, the prediction market space has become more crowded, and the pace of new entrants is accelerating…
Here’s a rundown of major token, protocol and airdrop news from the day:
Here is the list of other notable headlines from the day in NFTs:
