Prediction Markets: Which 5 States Can Use FanDuel Predicts Right Now?
Sportsgrid Staff
Host · Writer
Prediction markets are having a moment, and this time they’re moving a little closer to the mainstream. On December 22, 2025, FanDuel and CME Group formally launched FanDuel Predicts, a standalone mobile app built around event-based contracts tied to sports, financial markets, and major real-world outcomes. The initial rollout is limited, but it signals a notable shift in how large gaming operators are approaching states without traditional online sports betting.
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The 5 States Where FanDuel Predicts Is Live
At launch, FanDuel Predicts is available in five states:
- Alabama
- Alaska
- South Carolina
- North Dakota
- South Dakota
These states share one key trait: online sports betting is not currently legal statewide. Prediction markets offer an alternative structure, allowing users to buy and sell contracts on whether a specific event will happen, rather than placing a conventional wager against a sportsbook.
FanDuel has described this as a phased rollout, with additional states expected to be added through early 2026.
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How Prediction Markets Differ From Sports Betting
While the mechanics may feel familiar, prediction markets operate differently from traditional sportsbooks. Users purchase contracts priced between $0.01 and $0.99, choosing “Yes” or “No” on an outcome. The price reflects the market’s implied probability, and contracts can be traded before settlement.
FanDuel Predicts offers contracts tied to:
- Financial benchmarks like the S&P 500 and Nasdaq-100
- Commodities such as oil, gas, and gold
- Cryptocurrencies and economic indicators like GDP and CPI
- Sports outcomes, including football, basketball, baseball, and hockey, in states where sports betting is not legal
As states legalize online sports betting, FanDuel Predicts will stop offering sports contracts in those jurisdictions, maintaining a clear line between the two products.
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Why These States Matter
The initial five-state launch isn’t random. Prediction markets provide a legal pathway into states like Texas, California, and Georgia down the road—markets that remain closed to full-scale sports betting. Industry analysts have noted that this approach allows operators to build brand presence without violating state betting laws.
That strategy does come with trade-offs. In Nevada, for example, FanDuel and DraftKings chose to withdraw licensing efforts rather than attempt to balance both sportsbook and prediction market offerings, highlighting the regulatory tension surrounding these products.
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Regulation, Identity Checks, and Consumer Protections
FanDuel Predicts uses the same Know Your Customer (KYC) process as FanDuel’s sportsbook, requiring identity verification, banking details, and government-issued ID. The app also includes deposit limits, alerts, and self-exclusion tools, as well as access to mental health resources.
From a regulatory standpoint, prediction markets remain a gray area. Critics argue that they resemble unlicensed sports betting, while supporters frame them as financial instruments regulated through partners such as CME Group.
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What Comes Next
Prediction markets aren’t replacing sportsbooks, but they’re clearly expanding the map. For now, Alabama, Alaska, South Carolina, North Dakota, and South Dakota are the only states where FanDuel Predicts users can access sports-related contracts. As legal frameworks evolve, that list is likely to grow—and so will the debate around where prediction markets truly fit in the U.S. gaming landscape.
