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Prediction Markets vs Sportsbooks: FanDuel CEO Says The Gap Is Still WideFanDuel CEO Amy Howe says prediction markets aren’t taking real money out of regulated sportsbooks, even after a surge in Super Bowl trading that put platforms like Kalshi under a brighter spotlight.
Speaking on CNBC, Howe pushed back on the idea that prediction sites are siphoning customers in states where sports betting is already legal, arguing the products serve different users and, more importantly, don’t offer the depth that sportsbook bettors expect.
“Betting beats trading” on depth
Howe described prediction markets as closer to daily fantasy than a full sportsbook. Her point was simple: regulated books offer the menu that drives repeat betting, live wagering, broad prop options, and complex markets built around how fans actually watch games.
She also pointed to the holdout-state reality. California hosted the Super Bowl but still hasn’t legalised sports betting, and Howe said prediction markets can’t meet the regulatory requirements of regulated states for consumer protections and oversight.
FanDuel’s long game, she added, is still legalisation in big missing markets like California and Texas, not chasing products that could be pulled back by regulators or the courts.
Integrity, and why leagues keep circling this fight
Howe leaned heavily on integrity as the difference-maker, saying legal sportsbooks are set up for real-time monitoring and coordination that prediction markets don’t replicate.
She cited FanDuel’s role in the investigation involving NBA player Terry Rozier, saying the book flagged unusual activity five hours before tip-off and alerted league officials. Howe’s broader claim is that regulated operators can step in fast because they already share data and have established ties with leagues.
The tax gap is part of the argument
Howe also spotlighted taxation as an uneven playing field. Sportsbooks in regulated states face heavy duties; she specifically referenced New York’s 51% tax rate on sports betting revenue, while prediction markets don’t carry comparable state gambling taxes.
Reports noted that New York generated more than $2 billion in sports betting gross gambling revenue and about $1 billion in tax revenue in the fiscal year ending March 2025, which Howe used to underscore the contribution regulated betting makes to state budgets.
Howe’s comments come as prediction markets post eye-catching volumes
Reports around Super Bowl trading put Kalshi’s activity at $1 billion-plus across Super Bowl-related markets, adding fuel to the debate over where sports “event contracts” end and betting begins.
Kalshi has said it plans to establish an independent committee focused on issues such as insider trading and has discussed transparency reporting, moves that follow rising criticism from political and industry voices, including former New Jersey governor Chris Christie, who has argued these products resemble gambling without the same oversight.
Source: PlayUSA
