Report: FanDuel, Kalshi Exploring Potential Partnership

• According to Front Office Sports, FanDuel and Kalshi are exploring a potential deal
• The two companies are exploring a new partnership to work together in the prediction markets
• FanDuel has previous expressed interest in prediction markets

FanDuel, one of the largest sports betting company in the country, is reportedly exploring the potential to partner up with a leading company in the prediction market space.

According to a report from Front Office Sports, FanDuel and Kalshi are exploring a potential partnership that would include “various betting efficiencies” between the two companies. FanDuel, one of the most successful gaming companies in the U.S., has expressed interest in the past to potentially enter the prediction markets.

Flutter CEO Peter Jackson publicly said during the company’s 2025 Q1 earnings report the company is closely monitoring the prediction markets as it evaluates potentially jumping into the space.

Win-Win For Both Companies?

A partnership between FanDuel and Kalshi could prove beneficial for both parties. Kalshi currently offers sports prediction market contracts to customers in all 50 states in the U.S. and is regulated by the Commodity Futures Trading Commission (CFTC). FanDuel, however, is licensed to offer sports betting in 25 states (22 states for online sports betting) and is regulated by each individual state.

A partnership would instantly expand FanDuel’s reach into all 50 states if they begin to offer sports prediction contracts, and could also potentially offer event contracts on such events like political elections or pop culture events.

For Kalshi, FanDuel could help to usher the event prediction company into more expansive sports event contracts outside of simple single-game moneyline offerings and futures. FanDuel could introduce Kalshi customers to more expansive – and profitable – offerings such as parlays, player props, and even point spreads, plus give them access to their massive customer base of over 12 million users.

The bottom line is FanDuel could enter a larger market with less costly license fees, less burdensome regulations, and far fewer taxes, while Kalshi could instantly have access to FanDuel’s expansive customer base and the company’s vast experience with more lucrative markets and betting types.

Who Regulates Event Contracts?

FanDuel representatives will likely have to weigh the potential difficulties of entering the event market space, as Kalshi is currently defending its offerings in several states. Seven states have sent cease-and-desist notices to the company, to which Kalshi has responded by filing lawsuits against gaming regulators in Maryland, Nevada, and New Jersey.

Kalshi CEO Tarek Mansour and company officials have long maintained that prediction markets can only be regulated by the CFTC and states have no say in their offerings. Mansour and Kalshi officials have noted their sports event contracts differentiate from traditional sports betting as they are not played “against the house,” but traded between different users who purchase contracts on either side of an outcome.

State gaming regulators maintain the markets need to be beholden to regulations, taxes, and license fees that sports betting and gaming operators are required to follow.

However, a potential new leader of the CFTC recently noted the commission likely will not step in to regulate sports event contracts beyond what is already being done. Brian Quintenz, President Donald Trump’s (R) nominee to become the next head of the CFTC, recently said during his nomination hearing the commission will allow sports event contracts unless told otherwise by the courts or Congress.