FanDuel Reportedly Exploring Deal with Kalshi
FanDuel is reportedly considering a deal with Kalshi as a way to enter the U.S. prediction market, navigating around legal ambiguity and potentially bypassing sports betting restrictions in over 20 states.
FanDuel and Kalshi: A Potential Partnership in the Works
FanDuel, a leading U.S. sportsbook operator and subsidiary of Flutter Entertainment, is in talks with prediction market startup Kalshi. The deal could involve multiple aspects of betting and expand opportunities for both companies.
Kalshi has been pushing into the event-contract space, especially after filing a lawsuit against the CFTC last year to gain approval for election-based contracts. In January, Kalshi broadened its offerings by introducing contracts on sporting events and announcing a partnership with Robinhood.
What’s in It for FanDuel?
- Kalshi operates in all 50 U.S. states, while traditional sports betting is only legalized in 39.
- Access to Kalshi’s non-sports contracts — including elections, Rotten Tomatoes scores, and Person of the Year predictions.
- FanDuel’s user base of over 12 million registered accounts could bring new liquidity to Kalshi markets.
Industry analysts believe FanDuel could leverage its audience to acquire a stake in Kalshi or similar market makers.
Kalshi’s Legal Battle
Kalshi’s contracts have drawn controversy for closely resembling sports betting. However, the company argues that its model is user-to-user trading, not betting against a house.
| State | Status |
|---|---|
| Nevada | Cease & desist + lawsuit |
| New Jersey | Cease & desist + lawsuit |
| Maryland | Cease & desist + lawsuit |
| Ohio, Illinois, Arizona, Montana | Cease & desist |
Kalshi has already scored early legal victories, including a Nevada court’s refusal to dismiss their case — allowing the company to continue operations despite regulatory pushback.
Federal-Level Backing
- Kalshi strategic advisor: Donald Trump Jr.
- Board member Brian Quintenz was nominated by President Trump to head the CFTC.
The Future of the Prediction Market
As interest in prediction markets grows, major sportsbook operators like FanDuel are actively exploring integration opportunities.
Kalshi and Crypto.com already offer basic contract types — such as futures and win/lose outcomes — but expansion into more traditional sportsbook features is expected, including parlays, spreads, totals, and even player-specific props.
This emerging model offers a compelling alternative in large states where sports betting remains illegal. Industry leaders view it as a high-potential growth area.
Conclusion
A potential deal between FanDuel and Kalshi could shift the dynamics of the U.S. betting market. By leveraging legal workarounds and a peer-to-peer prediction model, both companies could bypass regulatory hurdles and engage untapped markets.
Among the key advantages: Kalshi’s nationwide reach, cross-access to various contract types, and FanDuel’s massive user base. As the industry watches closely, a sportsbook–prediction market partnership is no longer a hypothetical — it’s just a matter of time.