State Of Online Gambling In USA - FanDuel Prediction Markets Odds Shark
In our latest exploration of the online gambling industry in the USA we feature news that FanDuel is exploring the potential of adding prediction markets.
+ Prediction Markets: Flutter, FanDuel’s parent company, is monitoring prediction markets in the US and could join the growing industry if an opportunity presents itself.
+ DraftKings Illinois Fee: DraftKings CEO says the company could drop its $0.50 surcharge for each bet placed in Illinois.
+ Fanatics Enters Missouri: Fanatics Sportsbook has officially applied for a sports betting license in Missouri.
During a Q2 earnings call, Flutter CEO Peter Jackson informed investors that the company is closely monitoring the US prediction market industry. Flutter is FanDuel’s parent company.
Jackson believes the company is well-positioned to capitalize on the right opportunity to enter the market through its ownership of Betfair Exchange. Betfair Exchange is similar to prediction markets and has operated for over 20 years in the UK and beyond.
In that same earnings call, the company reported that its sports betting handle has grown by 7% YoY, making it the largest sports betting operator in the US. Should it enter the prediction market space, it would easily challenge current prediction market leaders, Kalshi, as the number one option in the US.
What’s Next?: Kalshi suffered a loss in Maryland court, where its product could be barred from the Old Line State. That result could be matched in New Jersey and Nevada. Flutter would certainly pull the brakes on any foray into the prediction market space if that occurred.
DraftKings Might Scrap $0.50 Surcharge in Illinois
DraftKings CEOJason Robbins indicated that the company might scrap its $0.50 surcharge for Illinois customers, but would instead make its odds “less sharp”. Effectively baking the surcharge into the odds offered by the sportsbook.
DraftKings had previously planned to add a $0.50 surcharge to every bet placed in Illinois, effective September 1. The move is in response to the state levying a $0.25 to $0.50 fee on every bet placed on the state’s 24 sportsbooks, effective July 1.
As Jackson commented, neither is a good solution, but he has asked the state for more clarity on how this tax is to be implemented. The answer could dictate what the company does next.
Fanatics Enters Missouri Without A Partner, Yet
Fanatics has officially applied for a retail and online sports betting license in Missouri. The Show-Me State is set to launch sports gambling on December 1, 2025.
Fanatics has applied for a tethered license, but has not yet revealed with whom it is partnering. Tethered licensees must partner with a state casino or professional sports franchise.
Bet365 has partnered with the St. Louis Cardinals, and BetMGM has partnered with Century Casinos. Underdog and Caesars have applied for tethered licenses but, like Fanatics, have yet to disclose their partner. DraftKings, FanDuel, and Circa have applied for the state’s two untethered licenses.
Fanatics is live in 22 other states and the District of Columbia; entering Missouri would push the book to 24 states since launching in early 2023.
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Complicated DFS Situation In West Virginia
West Virginia Attorney General John McCuskey says Daily Fantasy Sports and against-the-house games are “complicated”. Specifically, when it comes to the question of its legality.
The West Virginia AG was asked to provide a ruling on DFS sports in the Mountain State, but couldn’t. West Virginia has never properly defined what constitutes “DFS” and, as such, the AG can’t say if DFS games should be banned or not.
Further to that, DFS games have been specifically excluded from what can be defined as “sports wagering” in the state.
What’s Next?: McCuskey’s solution was to create legislation that defines daily fantasy sports. So keep an eye out for DFS bills popping up in the West Virginia state house soon.
bet365 Is Now Live In Kansas
Sportsbook bet365 has now entered its 14th state after successfully launching in Kansas earlier this month. The UK-based book is now live in Arizona, Colorado, Iowa, Illinois, Indiana, Kentucky, Louisiana, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, and Virginia.
Bet365 is the sixth online sportsbook in the state, joining DraftKings, FanDuel, Caesars, BetMGM, Fanatics, and ESPN Bet.
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