Prediction markets proposal boosts outlook for Flutter and DraftKings
Proposed US regulatory changes for prediction markets have lifted sentiment around Flutter and DraftKings, with both operators highlighting strong World Cup engagement and new growth opportunities.
Proposed rules from the US Commodity Futures Trading Commission (CFTC) have sparked renewed optimism for Flutter and DraftKings by paving the way for federally regulated prediction markets tied to sporting outcomes and player performances.
Under the proposals, event contracts linked to game results and player statistics would be permitted, while markets involving injuries, referee decisions and youth sports would remain prohibited. CFTC Chair Mike Selig described the framework as robust and transparent.
The development comes as traditional US sports betting faces slower growth, higher taxation in some states and signs of player fatigue. Prediction markets could offer operators access to customers in jurisdictions where conventional sports betting remains unavailable.
The upcoming FIFA World Cup is expected to provide an early test of demand. Flutter, owner of FanDuel, said it expects betting activity to reach as many as 100,000 bets per minute during peak periods, while DraftKings projects prediction market trading volumes will rise 24 per cent to $1.3bn.
Analysts have also responded positively. Morningstar estimates the North American prediction market opportunity could reach $60bn by 2030, while industry observers suggest the sector could significantly expand the addressable US market.
However, uncertainty remains. Analysts have warned that the proposed rules face a 45-day consultation period and could still encounter legal challenges before any final framework is adopted.
