FanDuel, the U.S. online gambling branch of Flutter Entertainment (FLUT), just launched a new prediction-market app called FanDuel Predicts in five states. This comes only days after its main competitor, DraftKings (DKNG), released a similar app. FanDuel Predicts lets users bet on the outcome of events like sports games, cultural moments, and financial indicators. Importantly, since these prediction markets are federally regulated, they are allowed to operate in states where online gambling isn’t yet legal.
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At first, the app will only be available in Alabama, Alaska, South Carolina, North Dakota, and South Dakota, but FanDuel plans to expand it nationwide in 2026. James Cooper, a senior vice president at FanDuel, said that launching in these five states will help them learn how users interact with the platform so they can improve it before expanding. Meanwhile, DraftKings has launched its own prediction-market app in 38 states.
Notably, both companies are partnering with CME Group (CME), a major U.S. derivatives exchange, to handle the bets for now, though DraftKings eventually plans to use its own exchange. The rush into prediction markets is part of a strategy to stay ahead of newer competitors like Kalshi and Polymarket, which offer similar services with fewer restrictions. FanDuel wants to offer prediction contracts in all 50 states for things like economic data, stock indexes, and commodity prices, but it will only offer sports contracts in states where sports betting isn’t already legal.
Which Stock Is the Better Buy?
Turning to Wall Street, out of the three stocks mentioned above, analysts think that FLUT stock has the most room to run. In fact, FLUT’s average price target of $297.56 per share implies more than 32% upside potential.
