iGaming Daily Ep 649: FanDuel, DraftKings & More Go All In on Prediction Markets
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Nov 17, 2025 Tom Nightingale, a Senior Journalist at SBC Americas with deep insights into betting and regulatory affairs, joins to discuss the surge of prediction markets in the US gaming industry. He highlights how major players like FanDuel and DraftKings are pivoting to sports contracts as a strategic entry into new states, notably California and Texas. The conversation dives into the implications of this move, integrity risks amid recent scandals, and the contentious exit of big operators from Nevada. Will regulators challenge these giants or let the market thrive?
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Sideways Market Entry To California And Texas
- Major US operators are pivoting to sports-focused prediction markets as a "sideways" expansion into untapped states.
- FanDuel and DraftKings see event contracts as a path into California and Texas without state betting legalization.
Prediction Markets As Revenue Expansion
- Operators argue prediction markets unlock new revenue where regulated sports betting has plateaued.
- They view sports contracts as functionally similar to sportsbooks and a large commercial opportunity.
Integrity Risks Mirror Traditional Betting Issues
- Integrity concerns from NBA and MLB scandals intensify scrutiny of sports event contracts.
- Existing monitoring firms (e.g., IC360) are already tied into many operators but translating tools to event contracts remains uncertain.