Discussions indicated possible contract talks between FanDuel Sportsbook and Kalshi.
Title: FanDuel Mulling Over Partnership with Kalshi: A Potential Game-Changer in Sports Betting
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The Skinny
- FanDuel and Kalshi could be working together on sports prediction markets, potentially shaking up the industry.
- Flutter Entertainment, FanDuel's parent company, operates a similar service in the UK.
- States are expressing concerns as they square off against Kalshi over the legality of these markets.
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Related News
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The Inside Scoop
- It's true, there's talk under the table between FanDuel (backed by Flutter Entertainment) and Kalshi, a prediction market exchange operating in all 50 states.
- Kalshi's CFTC-regulated platform allows it to offer bets nationwide, even in states where traditional sports betting remains verboten.
- FanDuel, with about 25 state licenses, is regulated by state gaming bodies, whereas Kalshi operates under federal regulation for broader reach.
- Peter Jackson, Flutter Entertainment's CEO, announced interest in the prediction market sector, citing BetFair's European success as a benchmark.
- If a deal goes through, FanDuel will be able to branch out beyond traditional sports betting into areas like politics and pop culture, dodging state gaming laws' limitations.
Regulatory Tensions
- Kalshi's federal regulation sets it apart from state-regulated sports betting services, allowing it to operate in all states.
- The US' sports betting landscape is fragmented by state laws, with only 39 states currently legalizing sports betting.
- By teaming up with Kalshi, FanDuel could skirt state regulations and taxes, scoring a nationwide customer base, even in states where sports betting is banned.
- Despite its legal victory allowing election betting, Kalshi's prediction markets remain under regulatory scrutiny. Sportsbooks are treading carefully to avoid jeopardizing their operating licenses.
The Bottom Line
FanDuel is reportedly eyeing a partnership with Kalshi, which could mix Kalshi's federally regulated prediction markets with FanDuel's sports betting platform. If successful, this collaboration could allow FanDuel to stretch its market reach across the nation, into states currently off-limits for sports betting. It could also introduce betting markets governed by federal law, streamlining the betting landscape in the US. But, regulatory issues lurk, especially considering the tension between state and federal regulations for sports betting and prediction markets. No official announcement has been made as of mid-June 2025. [1][2][3][4][5]
[1] Reuters[2] Yahoo Finance[3] Cointelegraph[4] Bloomberg[5] The Washington Post
- Michael Savio, the reputable insider of the US online casino industry, suggests that a partnership between FanDuel and Kalshi, both operating in the sports betting sector, could create a significant impact in the market by introducing sports prediction markets, enabling a nationwide customer base, even in states where traditional sports betting is banned.
- In this potential alliance, FanDuel could extend its services beyond sports betting, venturing into areas like politics and pop culture, thanks to Kalshi's federally regulated platform, possibly avoiding state gaming laws' limitations and taxes. However, the deal's success depends largely on the resolution of regulatory issues between state and federal regulations for sports betting and prediction markets.
