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FanDuel CEO Amy Howe has rejected claims that prediction markets are siphoning customers away from regulated sportsbooks during the recently concluded Super Bowl. One major prediction market saw trading volumes surge nearly 1,400% in the weeks leading up to the game, attracting growing regulatory scrutiny from state and federal officials.
Despite this explosive growth, Howe told CNBC Television that prediction markets and sports betting are fundamentally different products catering to different demographics. She noted that FanDuel is not concerned about meaningful revenue loss in states where sports betting is currently legal and operational.
Market depth: Why betting beats trading
Howe described prediction markets as being closer in structure to daily fantasy sports than a full-scale sportsbook experience. She claimed that they do not offer the breadth of bets available from licensed sportsbooks, such as a wide range of in-play markets, specialized player props, and complex event betting that fans have come to expect.
This uniqueness is especially important in states like California. While California hosted this year’s Super Bowl, the state has yet to legalize sports betting. Howe said prediction markets simply cannot match the breadth of options available in regulated states, nor can they provide the consumer protections mandated by state gaming commissions.
“We’re not terribly concerned that there’s going to be a big cannibalization in states that are legal,” Howe said during the interview.
She explained that FanDuel’s long-term strategy is centered on gaining legislative approval in major holdout states like California and Texas. The company favors this methodical, legal approach over competing directly with products operating in regulatory gray areas that may face future litigation or bans.
Real-time monitoring and pro-league ties
Integrity was a central theme in Howe’s post-game analysis. She argued that legal sportsbooks are far better equipped to safeguard sporting events than prediction markets, citing sophisticated monitoring and formal league partnerships. Unlike unregulated platforms, licensed operators share real-time data with leagues to identify and block suspicious activity before it impacts a game.
The NFL and the American Gaming Association have both raised concerns about the oversight of prediction markets. Howe cited FanDuel’s role in the investigation of NBA player Terry Rozier as a prime example of this vigilance. FanDuel flagged unusual betting patterns five hours before a game tipped off and immediately alerted league officials.
Federal prosecutors subsequently accused Rozier of collaborating with a betting ring to rig “under” proposition wagers by exiting games early under the guise of injury. While Rozier has maintained his innocence, the case highlights the speed at which regulated books can intervene. She noted that such real-time cooperation is only possible within a regulated framework.
Revenue & regulation: The $1 billion tax contrast
Taxation remains another major point of friction between regulated sportsbooks and prediction markets. Licensed operators face heavy tax burdens, such as New York’s 51% rate on gross gaming revenue. Prediction markets, however, often operate without equivalent fiscal responsibilities to state governments.
According to Howe, this imbalance allows prediction market operators greater flexibility to reinvest in customer acquisition rather than contributing to state public funds. The contrast is stark: New York recorded more than $2 billion in gross gambling revenue and $1 billion in tax revenue from legal sports betting in the fiscal year ending March 2025.
In response to regulatory pressure, Kalshi recently announced it would form an independent committee to investigate issues like insider trading and plans to publish transparency reports. This move aims to address concerns from officials like former New Jersey Gov. Chris Christie, who has argued that such platforms are essentially illegal gambling without proper oversight.
$150 billion benchmark: Why regulation is the North Star
The Super Bowl remains the most heavily bet on event in the annual sporting calendar. Fans today wager on everything from the game outcome to the duration of the national anthem and the songs performed during the halftime show.
As of February 2026, there are 39 legal states, plus Washington, DC, for sports betting. Americans bet almost $150 billion on sports last year, a 23.6% increase over the previous year. Howe concluded by stressing the need to bring sports betting “into the daylight” through legalization to ensure the entire ecosystem remains controlled and transparent.
