
Much has been made of the derivatives prediction market platforms entering the sports betting sector and offering contracts, legally circumventing state regulatory agencies. Flutter believes it has the experience to compete in this environment and is exploring the opportunity to do so.
Exchange Experience
Flutter is best known in the United States as the parent company of the most popular sports betting site in the nation, FanDuel. However, the British gaming powerhouse has several European subsidiaries, one of which is Betfair, one of the largest sports exchanges in the world.
Prediction Market Potential
Flutter’s CEO, Peter Jackson, spoke about entering the prediction platform market in the United States during a recent Q1 2025 earnings call.
Jackson said, “We are really excited about our revolutionary outcome-based pricing technology that allows us to price an offer and an almost infinite amount of outcomes across the most relevant and immersive betting markets.
“We are also closely monitoring developments around futures markets and the potential for direct and indirect opportunities for FanDuel to explore.”
Leveraging Betfair’s Experience
Jackson then emphasized the synergy they already possess through Betfair and the wealth of experience the company has that can be incorporated into whatever new entity will be offering betting contracts in the US.
Jackson noted, “We do operate the world’s largest sports betting exchange, so we know this place well. The Betfair exchange has, for many years, given us very good insights into how this kind of stuff can play out. It tells us you have to be thoughtful about how exciting the exchange product can be when you have a fully fledged sports betting product available to you. So, we’re very thoughtful about it.
“In states where sports betting is allowed, I’m not that confident that this will have a significant impact. But there are new markets that could become available; the political stuff is what people talk about, and other gamified markets as well.
“We’re interested in the potential opportunity, and we have brought some of our team who have some experience in building these products and services from the Betfair exchange to help us evaluate these opportunities.”
Prediction Platforms Enjoy Early Legal Victories
Prediction platforms like Kalshi, Polymarket, Crypto.com, and Robinhood operate under the federal authority of the Commodity Futures Trading Commission (CFTC). They are licensed to take their products to all 50 states with impunity, but they recently crossed paths with state gaming agencies when they began accepting sports betting contracts that were distinctly similar to the odds and point spreads being offered by state-licensed sportsbooks.
The major difference between the two is that trading platforms offer sports betting contracts whose odds are dynamic, much like a stock offering; they fluctuate. However, sportsbooks offer odds or point spreads that are locked in the moment someone makes a wager. The sportsbook may subsequently decide to move those odds or point spreads, but the bettor has no option, and the bet remains constant.
Kalshi Takes Legal Stand
Despite receiving cease-and-desist orders from several states, Kalshi has taken the state agencies on in federal court and scored legal victories over Nevada and New Jersey.
Kalshi CEO Tarek Mansour acknowledged the ruling on X, posting that he is “grateful for the court’s careful attention to this matter and recognition of Kalshi’s status as a CFTC-regulated exchange.”
He also added, “If the CFTC tells us to stop, we will absolutely stop. If they don’t, then we won’t.”