Predictions market Kalshi and Flutter Entertainment’s FanDuel have reportedly been in conversation about a potential partnership. The two companies would leverage their own unique powers within the gambling world to expand the brands further in the US.
In recent months, prediction markets like Polymarket and Kalshi have exploded onto the scene. They allow gamblers to bet on just about anything, and that’s beginning to include loopholes to include some sports betting. It manages this through “sports events contracts”, rather than how FanDuel or DraftKings operate.
FanDuel currently hosts 12 million bettors, but has access to only 39 states in the US. Sports betting isn’t legal in the remaining 11 states, but Kalshi has a full run of all 50. Kalshi even managed to win the rights to provide political betting in court.
If the partnership takes hold, something that multiple sportsbooks are looking into with alternatives or setting up their own, it could change the gambling landscape. With access to the entirety of the US, companies like FanDuel can begin to drive towards even more growth, something tech companies of all flavors have been striving for in the last few years.
Kalshi expands into sports betting, despite pushback
Kalshi technically shouldn’t allow for per-game bets, but instead aims to look at the particular sports event as a whole. So instead of betting on “Manchester United vs Liverpool”, you’d bet on “Who will win the Premier League?” with options being Manchester United or Liverpool.
In recent weeks, since the Commodity Futures Trading Commission (CFTC) – which regulates Kalshi – has turned a blind eye to more traditional sports gambling. States have begun to fire back to curb their rise, but with not much success. It’s suspected that Kalshi’s decision to make Donald Trump Jr. a “strategic advisor” might have something to do with it.
While Kalshi reportedly makes no cash off of losing bets, another distinction between it and sportsbooks is that it is slowly beginning to edge its way into places it shouldn’t. The front page is currently littered with thinly disguised sports bets.
However, the method of betting through Kalshi still relies on users trading against each other, rather than facing the house. FanDuel sets the odds to face, while Kalshi’s users are technically “trading” with each other, similarly to stocks. An example of how much is needed to bet vs winnings can be found in the comments on contracts. One user “bought” a $318.97 contract and was paid out $386.96.
