Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioFanDuel is the latest entrant into the prediction markets sector, with the launch of its FanDuel Predicts platform, now live in five states. Meanwhile, Coinbase is rapidly expanding into the space and has agreed to acquire The Clearing Company, a prediction markets platform, giving it a dual approach that mirrors Robinhood’s strategy.
FanDuel’s Entry: FanDuel Predicts Goes Live
FanDuel, through its partnership with CME Group, has launched FanDuel Predicts, initially in five U.S. states: Alabama, Alaska, South Carolina, North Dakota, and South Dakota. The platform will expand through a phased rollout to all 50 states through early 2026.
FanDuel Predicts enables customers to trade yes/no event contracts on various markets. They include the S&P 500, the prices of oil and gas, gold, and economic indicators such as GDP.
It will also offer sports outcomes in states without legal sports betting, except on tribal lands. That’s a notable limitation that sharply distinguishes FanDuel’s approach from other recent prediction-market launches.
Lynne Fitzpatrick, President and Chief Financial Officer of CME Group, described the launch as a “pivotal step for expanding the reach of our products to FanDuel’s millions of registered users across the U.S.” She projected potential revenue outcomes that rival other established prediction-markets partnerships.
Positioning & Scale
While FanDuel Predicts enters a crowded space, its initial footprint is more modest compared to rivals like DraftKings. DraftKings Predictions, which rolled out days before, is available in 38 states.
It also notably partnered with CME Group for the launch. Interestingly, it did not use Railbird Exchange, the CFTC-licensed platform it had acquired in October.
Meanwhile, Fanatics became the first major sports betting operator to enter prediction markets at the beginning of December. Fanatics Markets also launched at a larger scale, being available in 24 states.
FanDuel’s launch also incorporates plans for parlays in early 2026. That echoes strategies to blend traditional sportsbook features into federally regulated prediction markets.
The recent entry of FanDuel, DraftKings, and Fanatics highlights a broader pivot by sportsbook operators toward prediction markets as a complementary product line. In November, FanDuel and DraftKings voluntarily withdrew from the Nevada licensing process. It relinquished its pursuit of the state, which has been a fierce opponent of the federally regulated sector.
A Cautious Compliance Strategy — Including Tribal Land Sensitivities
The explicit exclusion of tribal lands is particularly significant. To date, FanDuel appears to be the first major operator to formally acknowledge tribal jurisdictional boundaries in a prediction-markets launch.
That choice underscores a cautious approach to compliance. That’s notable as tribal governments have increasingly asserted that prediction markets may infringe on exclusivity provisions contained in state-tribal gaming compacts.
FanDuel’s approach contrasts with arguments made by Kalshi and its partners in ongoing litigation against state gaming regulators and tribes. The company has contended that precise geofencing — particularly around complex jurisdictional boundaries — is costly and not commercially viable at scale.
By carving out tribal lands despite launching in non-sports-betting states, FanDuel signals a willingness to absorb additional compliance friction in exchange for reduced legal and political risk.
Coinbase’s Strategic Move: Acquisition of The Clearing Company
On the same day FanDuel Predicts launched, Coinbase announced the acquisition of The Clearing Company, a prediction markets startup led by former Polymarket employees. The deal is expected to close in January 2026.
According to Coinbase’s announcement, The Clearing Company brings expertise that will help “power and scale prediction markets trading on Coinbase.”
The team, led by founder Toni Gemayel—who previously held growth roles at Kalshi and Polymarket—will support Coinbase’s broader ambition to build what it calls an “Everything Exchange.”
Coinbase characterizes prediction markets as a “natural fit” for its unified platform, integrating crypto, equities, derivatives, and real-world outcome contracts.
Coinbase’s Rollout & Regulatory Strategy
The acquisition announcement comes less than a week after Coinbase announced its entry into prediction markets via a partnership with Kalshi.
In parallel, the company has launched zero-commission stock trading. That signaled a broader bid to compete with brokerages like Robinhood and Interactive Brokers.
Only a day after the announcement of the prediction market entry, Coinbase filed lawsuits against the states of Michigan, Illinois, and Connecticut. The company seeks to prevent those states from applying their state gaming laws to its prediction markets.
Coinbase argues that federally regulated market contracts fall under the jurisdiction of the CFTC rather than state gambling regulators.
The legal strategy follows the approaches by Kalshi, Robinhood, and Crypto.com. They have all challenged multiple states on similar regulatory grounds.
Following Robinhood’s Playbook
Coinbase’s dual approach to prediction markets mirrors the strategy that rival financial firm Robinhood has taken.
Robinhood was among the first companies to partner with Kalshi and offer prediction markets. Some reports suggest that Robinhood accounts for roughly 50% of Kalshi’s total trading volume.
Still, the fintech company announced in November that, in partnership with Susquehanna International Group, it had acquired 90% of prediction market exchange LedgerX.
The deal grants Robinhood a CFTC-regulated exchange structure. It enables it to issue prediction contracts directly, similar to what Coinbase aims to do with The Clearing Company.
At the time, a Robinhood spokesperson told CasinoBeats that the company doesn’t anticipate any changes in the near term and will continue its partnership with Kalshi.
