• Loading stock data...
Thursday, September 25, 2025
exclusive
Sports Betting

FanDuel, Kalshi Have Discussed a Deal

As sports prediction contracts explode in popularity, traditional sportsbooks are not only paying attention: they’re looking to partner up.

A view of the FanDuel Sportsbook betting area at Belterra Park Cincinnati.
Imagn Images

FanDuel has discussed a deal with the upstart trading exchange Kalshi that would include various betting efficiencies, Front Office Sports has learned. 

FanDuel, owned by publicly traded Flutter Entertainment, is the bellwether of the U.S. sportsbook industry, which Kalshi has threatened to disrupt in recent months. 

After winning the legal right to offer elections betting last year via suing the Commodity Futures Trading Commission (CFTC), in January Kalshi expanded into “sports events contracts,” including a high-profile partnership with the stock-trading giant Robinhood

So far, Kalshi has offered relatively straightforward bets like futures and single-game moneylines (meaning outright winners), but industry sources say it’s only a matter of time until parlays, point spreads, over/under’s, and eventually player props are available. 

Spokespeople for Kalshi and FanDuel declined to comment.

Because prediction markets like Kalshi and Crypto.com have exploded onto the scene in sports betting, industry sources say nearly all the sportsbooks and federally regulated exchanges (which include a number of other crypto exchanges that don’t currently offer prediction markets) are having discussions with each other to figure out frameworks of potential collaborations. 

There are a number of ways in which a partnership with Kalshi would benefit FanDuel— or any other sportsbook. Kalshi operates in all 50 states, whereas sports betting is only legal in 39, meaning that big-population states like Texas and California remain open frontiers in the gold rush. There is also the access to non-sports markets, including political elections and other trades Kalshi offers, like what will be the Rotten Tomatoes score for How to Train Your Dragon or who will be Time’s Person of the Year. 

On the other side of a potential deal, FanDuel has more than 12 million registered users, who could greatly increase the liquidity of Kalshi markets. Industry sources speculate that this user base could give FanDuel leverage to take an equity stake in Kalshi or other market-makers. 

The sports event contracts offered by Kalshi and Crypto.com have generated controversy because they appear so similar to sports betting. 

Kalshi maintains there’s a key distinction: Traditional wagers see users betting against “the house”—casinos or sportsbooks that set the odds and profit when bettors lose—while sports prediction markets offer nationwide marketplaces where users trade against each other.

There are significant differences of opinion. Regulators in at least seven states—Nevada, New Jersey, Illinois, Maryland, Ohio, Montana, and Arizona—have issued cease-and-desist orders seeking to stop Kalshi from offering sports event contracts. In response, Kalshi has sued state regulators in Nevada, New Jersey, and Maryland. The company has racked up some early wins in the Nevada case, including recently beating a motion to dismiss. Thus, Kalshi has continued operating in the face of its legal challenges. 

Kalshi also has a leg up with federal regulators, as Donald Trump Jr. is a strategic advisor to the firm. Brian Quintenz, a Kalshi board member, is President Trump’s nominee to become the next head of the CFTC. One potential competitor to Kalshi, an upstart exchange named Railbird, has been seeking CFTC licensure for years and was just approved Friday afternoon.

For all the handwringing over the differences between traditional sports betting and the offerings from Kalshi, one thing is clear: Sports betting giants have taken notice and have been inching closer to getting involved in the sports “prediction” space. 

Last month, executives from the top sports betting companies all made comments acknowledging this market; the CEO of Flutter said there is particular opportunity for such offerings in states that haven’t legalized sports betting.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Sep 18, 2025; Orchard Park, New York, USA; Buffalo Bills quarterback Josh Allen (17) runs the ball against the Miami Dolphins in the second half at Highmark Stadium.
exclusive

Kalshi, Polymarket Sought to Buy Prediction-Market Platform Novig

Novig is available in close to 40 states.

Have We Reached Peak Athlete Podcast?

How many athlete podcasts can the market support?
Montana State
exclusive

PE Firm Pitches Taking FCS Football Playoff Private

Sequence Equity presented FCS commissioners a plan for a new postseason.
opinion

9 Hosts Who Could Succeed Molly Qerim on ‘First Take’

Qerim stepped down from the high-profile host role last week.

Featured Today

FARMINGDALE, NY - SEPTEMBER 23: Rory McIlroy of Team Europe hits out of the rough on the first hole during the 2025 Ryder Cup at Bethpage State Park on Tuesday, September 23, 2025 in Farmingdale, New York.

Ryder Cup in New York: Record-Setting Hopes and Fan Concerns

Organizers anticipate record attendance and revenue, but worry remains about fan behavior.
FARMINGDALE, NY - SEPTEMBER 22: Cameron Young of Team USA hits his tee shot on the third hole during the 2025 Ryder Cup Practice Round at Bethpage State Park on Monday, September 22, 2025 in Farmingdale, New York.
September 23, 2025

U.S. Ryder Cup Players Will Be Paid. Not Everyone Is Pleased

Americans are receiving a $200,000 stipend, and not everyone is pleased.
Cheryl Reeve
September 21, 2025

How Cheryl Reeve Turned the Lynx Into the WNBA Gold Standard

Reeve has Minnesota six wins away from an unprecedented fifth WNBA title.
Tennessee quarterback Joey Aguilar (6) during a college football game between Tennessee and Georgia at Neyland Stadium in Knoxville, Tenn., on Sept. 13, 2025.
September 20, 2025

How Schools Are Skirting the New Salary Cap in College Sports

In the House settlement era, schools race to secure deals for players.

FanDuel, Jaguars Reach $5M Deal Over Employee Theft

A Jaguars employee stole $20 million and gambled much of it with FanDuel.
Sep 4, 2025; Philadelphia, Pennsylvania, USA; Philadelphia Eagles cornerback Adoree' Jackson (8) tackles Dallas Cowboys wide receiver CeeDee Lamb (88) during the third quarter of the game at Lincoln Financial Field.
September 5, 2025

Kalshi’s $27M NFL Opener Runs Into Tribal Challenge

California Tribes want Kalshi forced to implement geofencing.
Sep 8, 2025; Chicago, Illinois, USA; Chicago Bears quarterback Caleb Williams (18) rushes the ball past Minnesota Vikings safety Theo Jackson (26) during the second half at Soldier Field.
exclusive
September 10, 2025

Americans See Little Difference Between Prediction Markets and Betting

A survey found 85% of respondents believe sports event contracts are gambling.
Sponsored

How Soccer Star Jozy Altidore Became a Buffalo Bills Owner

Jozy Altidore discusses building a business legacy off the field.
Eagles
September 4, 2025

FanDuel Paying $80K for Eagles Trains Amid Transit Funding Fight

The gambling company is giving stopgap transit funding in Philadelphia.
Sep 1, 2025; Chapel Hill, North Carolina, USA; TCU Horned Frogs tight end DJ Rogers (0) catches a touchdown pass as North Carolina Tar Heels defensive back Kaleb Cost (21) defends in the fourth quarter at Kenan Stadium.
September 3, 2025

Polymarket Moves Closer to Reentering the U.S.

There’s yet more prediction markets momentum as the NFL season kicks off.
during the fourth quarter at Memorial Stadium in Clemson, S.C. Saturday, August 31, 2025.
September 2, 2025

Underdog Bets on Prediction Markets With Crypto.com Deal

Sports event contracts will be offered in 16 states.
Rob Bonta
August 29, 2025

Users Sue Daily Fantasy Companies After California Calls Them Illegal

Underdog Sports and Boom Fantasy were separately sued.