Bruce Dias 
FanDuel Predicts is the prediction market platform of leading US sportsbook operator FanDuel. Prediction markets are the new hot topic in the gambling world – even though they’re not legally considered gambling in the US – with top competitors like Kalshi, Polymarket and now FanDuel Predicts looking to close in on $100 billion total market trading volume in 2026.
However, sports contracts are the main offering of FanDuel Predicts. They also provide the majority of revenues across the sector. Up to 80% in some cases. The uptake of this new market – rising 5x in trading volume since just 2025 – shows sports betting fans are increasingly adapting to this new model. One that is similar but also divergent from existing sports wagering platforms. This is what you need to know about the key differences between the two from a theoretical, customer and regulatory and legal perspective.
The Predictions Model and How it Works
At FanDuel Predicts you can put down money on many similar markets to the FanDuel sportsbook. Super Bowl 2027 winner. The next NBA MVP. Who will win when Inter Miami play the Chicago Fire in the MLS. You know the deal.
However – the crucial difference is that you’re not putting a bet down against the house in a legal sense. FanDuel Predicts traders instead buy into a financial contract with other traders. Markets are priced based on trader opinion, between $0.01 and $0.99. When changed to a percentage this reflects the perceived probability of the event. For traders looking to put money down the steps go like this:
- Early market makers and internal models set the prices for each side
- Markets open and traders buy in on their prediction
- A 1% likely event will cost $0.01 per share while a 99% likely event will cost $0.99 per share, or somewhere in between
- The price begins to change according to the trading sentiment
- Traders can buy more shares, sell them or just hold
- The contract is settled when the event result is determined
- Traders holding shares in the correct outcome are paid out $1 – incorrect traders get nothing
In this model, the price traders buy in at is less final than in a sports bet. The end profit or loss is based on the dynamically updated odds provided by the market at conclusion, or when traders sell.
How the Betting Experience Differs
The biggest difference between existing sports betting platforms and prediction markets for end users is the buying and selling aspect of contracts. It is entirely possible to buy contracts and then never look at them again until they’re settled, in the manner of a traditional bet.
However, for those looking to make the most of the market and its features there’s a lot of potential swing in the dynamic price movements. Monitoring the markets to buy and sell at the right time is one key skill to master that sports bettors have previously not had to deal with. Other factors from the financial trading side of the equation can and arguably should influence traders’ decisions, including:
- Timing
- Reading market movements
- Position sizing
- Trading strategies like arbitrage or stop/loss levels
This also adds another layer for bettors or traders looking to gain an edge. Where sportsbooks consider and weigh expert information on the market alongside betting money – prediction markets are driven entirely by market price. Therefore experts who have an understanding of the dynamics behind a prediction that goes against the popular opinion, have bigger potential gains.
The Depth of the Market and the Contract Choices
Another big difference for sports bettors is in the range of options to put money down on. FanDuel Predicts does not offer live betting, parlay contracts or as many prop bets on micro in-game markets.
But it does offer one thing sportsbooks can’t – narrative or pop culture markets around sports. You can put money down on things like:
- The weather at sports matches
- Will x public figure or celebrity attend a big game
- Will commentators say a certain phrase during a game
- Markets on league or regulatory decisions on rule changes
- TV deals, sponsorships
These kind of markets would almost never be allowed by state regulators in sports betting markets for many reasons. However, it does give traders much more action around the entire sports culture, media and business sector than simply the on field results.
Another interesting similarity between sports betting and prediction market sports contracts is how customers discover new platforms. Consider an online resource like the Fanduel Predicts bonus offers page at Covers.com. People now visit these sites for expert opinion on prediction markets like FanDuel Predicts, and the parallels between the way customers look for promotions, payment systems and user experiences at these new platforms and online sportsbooks are clear.
Even the fact that FanDuel, one of the biggest sports betting companies in the US, has launched a prediction market is an excellent example of the growth of the sector in itself. Interestingly, from a commercial perspective, FanDuel Predicts has not been as successful as rival DraftKings Predictions, although neither has yet approached the huge trading volumes at big players Kalshi and Polymarket.
Regulation and Licensing – The Key Info
The main difference on a regulatory and legal level has been mentioned throughout this piece, because it’s at the heart of the model. Although you can put money down on who will win the 2027 Super Bowl at FanDuel Predicts, it is not federally considered sports betting.
Instead, contracts are regulated under financial trading rules by the Commodity Futures Trading Commission (CFTC). That means tens of millions of people can now legally put money on sports results, who could not before. This model has, as you might expect, caused some concern for regulators in local sports betting markets – and the model is currently being challenged legally in a dozen states.
Arizona, Massachusetts, Nevada, Michigan and New Jersey are among states that have cracked down on sports contracts – so prospective customers would be advised to look into the details. However, FanDuel Predicts is available for at least non-sports match contracts in all 50 states as of right now, and 32 also have the full range of sports contracts.
