Sportsbook prediction markets: DraftKings, FanDuel, Underdog
DraftKings, FanDuel, Underdog, Fanatics and PrizePicks now offer CFTC-regulated event contracts in apps that sit next to their sportsbook or fantasy products. Because they answer to the CFTC rather than state gaming regulators, these apps reach states with no legal sports betting, and they charge a trading fee per contract or per payout instead of building a margin into the odds.
How a prediction app differs from the sportsbook
- Regulator. Legal Sports Report puts it plainly: "FanDuel Predicts is regulated by the CFTC rather than state gaming bodies, which is what allows it to operate nationwide." A sportsbook needs a license in each state.
- Product. You buy a Yes or No contract priced from 1¢ to 99¢ that pays $1 if you are right. You can sell it before the event ends, at whatever the market will pay.
- Cost. The app charges an explicit fee, shown below. A sportsbook's cost is built into the odds it sets.
- Where sports are offered. Both big brands keep sports contracts mostly out of states where their own sportsbook is licensed. FanDuel said at launch that it "will cease offering sports event contracts" in states that legalize online sports betting.
- Bonuses. Welcome credits are generally non-withdrawable: DraftKings calls them Predictions Dollars, FanDuel calls them Predicts Bonus.
DraftKings Predictions
DraftKings announced its Predictions app on December 19, 2025, in 38 states including Texas and California. The contracts trade on Railbird Exchange, LLC, a CFTC-designated subsidiary DraftKings acquired with Railbird Technologies in October 2025. Legal Sports Report now calls the venue DKeX. Trading is offered through a CFTC-registered futures commission merchant that is an NFA member.
As of November 5, 2026, Legal Sports Report lists DraftKings Predictions in 47 states plus DC, excluding Nevada. Sports contracts are offered "mainly in states where DraftKings Sportsbook isn't available." Other categories include economics, stocks, crypto, commodities and culture. Combos can hold up to six legs, but elections, crypto, commodities, tennis and PGA Tour markets cannot go into a combo.
- Fee: $0.01 per contract at 1¢ to 19¢, $0.02 at 20¢ to 96¢, and $0.01 at 97¢ to 99¢. The fee covers brokerage and exchange fees.
- Age: 18+, per BettingUSA's review.
- Funding: debit card or bank transfer; no crypto deposits.
FanDuel Predicts
FanDuel Predicts is a FanDuel and CME Group venture that launched on December 22, 2025 in Alabama, Alaska, South Carolina, North Dakota and South Dakota. By mid-January 2026 it was live in all 50 states. It is offered by FanDuel Prediction Markets LLC, a registered futures commission merchant.
Financial, economic and commodity contracts are available in every state. Sports contracts are limited to 18 states without legal online sports betting: Alabama, Alaska, California, Delaware, Florida, Georgia, Hawaii, Idaho, Minnesota, Nebraska, New Mexico, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Texas and Utah. In June 2026, Crypto.com's OG exchange began supplying sports, entertainment and combo contracts to the app.
- Fee: 2% of the maximum payout on each trade. Selling early costs another 2% of the original potential payout.
- Age: 18+.
- Funding: debit card or bank transfer; no crypto deposits.
FanDuel also surrendered its Nevada sportsbook license after Nevada regulators said its prediction plans amounted to unlawful wagering, according to Legal Sports Report.
Underdog
Underdog partnered with Crypto.com Derivatives North America (CDNA), a CFTC-registered exchange and clearinghouse, in September 2025. It launched in 16 states, starting with states that have no legal sports betting. A February 2026 RotoWire guide gave both 33 and 34 states plus DC for Underdog Predict in different places, and listed a $10 minimum deposit by debit card, Apple Pay or Trustly. We found no published fee schedule.
Other entrants
- Fanatics Markets launched on December 3, 2025 in 10 states through a partnership with Crypto.com, covering sports, finance and culture.
- PrizePicks signed deals with Polymarket and Kalshi in November 2025. At that point its "Team Picks" game-winner contracts were live in 15 states.
- Novig is a sports-only exchange rather than a sportsbook brand. The CFTC designated its exchange, Ludlow Exchange, as a DCM on June 16, 2026, and it launched nationally on August 4, 2026. It is 21+ and excluded Arizona, Michigan and Nevada at launch.
State lists move with court rulings. Check where each app is available before signing up.
What you pay: a worked fee comparison
Take 100 contracts bought at three prices. The stake is 100 × price, and the payout if you win is $100. Kalshi's taker fee is shown for reference (0.07 × 100 × p × (1 − p)).
| Price | Stake | DraftKings Predictions | FanDuel Predicts | Kalshi (taker) |
|---|---|---|---|---|
| 10¢ | $10 | $1.00 (10% of stake) | $2.00 (20% of stake) | $0.63 (6.3%) |
| 50¢ | $50 | $2.00 (4%) | $2.00 (4%) | $1.75 (3.5%) |
| 80¢ | $80 | $2.00 (2.5%) | $2.00 (2.5%) | $1.12 (1.4%) |
FanDuel's fee is a fixed share of the payout, so it weighs most on longshots. A $10 stake on a 10¢ contract costs $2 to open and up to another $2 to sell early. DraftKings' flat per-contract fee is lighter on longshots and similar to FanDuel's in the middle of the range.
The comparison assumes the same price on every app, which rarely holds. Check live prices for the same game across venues, price other sizes in the fee calculator, and see Kalshi fees for how exchange fees are calculated. For how event contracts differ from a sportsbook bet in general, read prediction markets vs sportsbooks.
Which one makes sense
- You live in a state with a legal sportsbook. You will likely see few or no sports contracts on DraftKings Predictions or FanDuel Predicts. Kalshi, Polymarket US or Novig may list them, subject to state litigation; see Is Kalshi legal?
- You bet longshots. Per-payout fees hurt most there. Compare all-in cost before you trade.
- You are 18 to 20. DraftKings Predictions and FanDuel Predicts accept 18+. Novig does not.
This is general information, not legal or financial advice. Event contracts can expire worthless, and you can lose everything you put in.
FAQ
Is DraftKings Predictions the same as DraftKings Sportsbook?
No. DraftKings Predictions sells CFTC-regulated event contracts on Railbird Exchange, LLC, now called DKeX. It offers sports contracts mainly in states where DraftKings Sportsbook is not available.
What states is FanDuel Predicts available in?
All 50 states for financial, economic and commodity contracts. Sports contracts are limited to 18 states without legal online sports betting, including California, Texas and Florida.
How much does FanDuel Predicts charge?
A transaction fee of 2% of the maximum payout on each trade. On 100 contracts the payout is $100, so the fee is $2, and selling early costs another 2%.
How old do you have to be to use DraftKings Predictions or FanDuel Predicts?
Both list 18 as the minimum age. Novig, a sports-only exchange, requires users to be 21.
Why can't I trade sports on FanDuel Predicts in my state?
FanDuel offers sports contracts only in states without legal online sports betting. It said at launch that it would stop offering them in any state that legalizes online sports betting.