FanDuel CEO: Prediction Markets Won’t Hurt Sportsbooks

FanDuel’s chief executive officer, Amy Howe, has made it clear: prediction markets are not siphoning customers from regulated sportsbooks, despite one platform recording a whopping trading jump of nearly 1,400% leading up to the Super Bowl. 

“They Don’t Offer the Variety of Bets Fans Expect”

In an interview with CNBC, Howe explained the distinct appeal of prediction markets and traditional sports betting to different types of audiences. She went on to say that FanDuel isn’t worried about losing meaningful revenue in states where sports betting is legal.

For Howe, prediction markets are more similar to daily fantasy sports than full-fledged sportsbooks. 

“They don’t offer the variety of bets fans expect, like in-play markets, specialized player props, or complex event wagers,” she said. 

This difference is particularly notable in states like California, which hosted this year’s Super Bowl but has not yet given the green light to sports betting. 

“Regulation Is the North Star”

“Prediction markets can’t match what licensed sportsbooks provide, nor the protections required by regulators,” Howe added.

Integrity is, therefore, another advantage for regulated operators, as legal sportsbooks maintain strong ties with professional leagues and share real-time data to detect suspicious activity before it affects a game. 

Howe pointed to the way FanDuel tackled the NBA case involving Terry Rozier, when unusual betting patterns were flagged hours before a game, prompting league officials to be quickly alerted. 

The intensely debated incident was, therefore, used as an example of the high speed and oversight that are only possible in a regulated environment.

Taxation also makes a huge difference, as licensed sportsbooks contribute heavily to state revenue, while prediction markets oftentimes operate with little to no fiscal responsibilities. 

New York’s example is at the center. Last year, the state collected $1 billion in taxes on $2 billion in gross gaming revenue, whereas prediction markets often operate without equivalent fiscal responsibilities. 

Howe noted that this gives unregulated platforms additional freedom to invest in customer acquisition rather than supporting public funds.

Looking ahead, FanDuel’s focus will remain on its legal expansion, explained Howe, with approval in major holdout states like California and Texas as a primary topic. The company, therefore, plans to pursue a methodical, regulatory-compliant approach over competing in legal gray areas that could face future bans or litigation.

Finally, Howe stressed that bringing sports betting fully into the legal and regulated market is the way to ensure transparency, consumer protection, and a healthy ecosystem for both operators and fans.

“Regulation is the North Star,” she said, adding that it is the thing that keeps games safe, protects fans, and sustains the industry in the long term.