FanDuel Is Playing Catch-Up in a Market That Won’t Wait

Dominating a market sounds great until an even better one blows past you. While FanDuel holds a vice grip on US sports wagering, it largely sat out the prediction markets boom that Kalshi and Polymarket are now leading. With the new category’s weekly volume surging 30x in a year, FanDuel is racing to catch up — except the window is closing fast.

• Kalshi controls 90% of America’s prediction-markets action, and while FanDuel Predicts briefly overtook it in daily downloads, it’s since cratered after March Madness.
• To close the gap, parent company FlutterFLUT
  plans to invest up to $300M this year — but legacy licenses prevent FanDuel from offering sports prediction contracts in ~25 states.

The arena keeps growing: While FanDuel navigates a compliance maze, offshore crypto exchange Hyperliquid is testing event contracts with none of those constraints. Handling $219B in March alone, the decentralized platform would let traders bundle predictions alongside crypto, commodities, and equities. But the threat cuts both ways, as Kalshi and Polymarket consider moving onto Hyperliquid’s home turf with derivatives products. Ironically, in this industry, everyone is betting on someone else.