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Analysis · Prediction markets

What DraftKings Predictions, Fanatics Markets, Robinhood and Underdog prediction markets are, and which exchange is behind each

Each of these apps is a CFTC-registered futures commission merchant that sends trades to a separate CFTC exchange, not a licensed sportsbook. On 13 October 2026 Fanatics Markets listed 22 states and 4 territories with a minimum age of 21, Robinhood required 18 and blocked sports contracts for Maryland, Nevada and Michigan residents, and FanDuel Predicts said it is available in all 50 states.

Published 2026-10-13By the CryptoGuardz Register Desk6 min read23 sources

Photo: Adam Śmigielski / Unsplash

DraftKings Predictions, Fanatics Markets, Robinhood's prediction markets and Underdog Predict are not sportsbooks. Each is a CFTC-registered futures commission merchant (a broker) that routes event contracts to a separate CFTC-regulated exchange. On 13 October 2026 Fanatics Markets listed 22 states and 4 territories with a minimum age of 21. Robinhood requires 18. FanDuel Predicts says it is available in all 50 states.

Sources: company pages, SEC filings, the CFTC and state regulators, read on 13 October 2026.

Who runs each prediction market and which exchange is behind it?

Product	Parent	Exchange behind it	States	Source
DraftKings Predictions	DraftKings Inc.	DKEx (Railbird), CDNA, CME	not verified	DK rules page
Fanatics Markets	Fanatics	Crypto.com Derivatives North America	22 states, 4 territories	Fanatics availability page
Robinhood prediction markets	Robinhood Markets	KalshiEX, ForecastEX, Rothera, North American Derivatives Exchange	US, sports blocked for MD, NV, MI residents	Robinhood help
Underdog Predict	Underdog Sports Holdings	UDX (Aristotle Exchange), Kalshi, CDNA	not verified	Underdog disclaimers
FanDuel Predicts	FanDuel Group and CME Group	CME Group exchanges	all 50 states	FanDuel Predicts page

The broker holds your account. The exchange lists the contract and its clearing house settles it. Each of the five describes itself in CFTC terms, not as a sportsbook.

What is DraftKings Predictions?

A standalone app run by a DraftKings subsidiary. The Q2 2026 earnings release filed with the SEC says "GUS III LLC (d/b/a DraftKings Predictions)" offers "federally regulated event contracts under CFTC oversight". The site footer says:

Event Contract Trading is offered by DraftKings Predictions, a CFTC-registered Futures Commission Merchant and NFA member.

DraftKings Predictions home page, retrieved 2026-10-13

The 10-K for 2025 dates the launch: "DraftKings Predictions launched on December 19, 2025". DraftKings bought Railbird on 21 October 2025, and the 10-Q for the quarter to 30 June 2026 calls Railbird Exchange, LLC "a federally licensed exchange designated by the Commodity Futures Trading Commission". The CFTC's designation order says "the application of Railbird Exchange for designation as a contract market is approved." DraftKings booked a $58.1 million operating licence intangible for it, amortised over four years.

Railbird is not the only venue. The rules page says "DraftKings Predictions offers markets from multiple exchanges" and lists rulebooks for DKEx (Railbird), CDNA and the CME.

The availability page sorts states into "All Markets Available", "Financial Markets Only", "Sports Markets Unavailable" and "No Markets Available", but its map did not load. States and minimum age: not verified.

What is Fanatics Markets?

A broker owned by Fanatics that sends orders to Crypto.com's exchange. The footer reads:

Morton St. Trading Investments, LLC, doing business as Fanatics Markets, is a CFTC-registered futures commission merchant and NFA member. Contracts are offered by Fanatics Markets through Crypto.com | Derivatives North America.

Fanatics Markets footer, retrieved 2026-10-13

The Tech Account terms name that exchange in full as "North American Derivatives Exchange, Inc. d/b/a Crypto.com | Derivatives North America ("CDNA")". The Where We're Live page lists 22 states: Alabama, Alaska, California, Delaware, Florida, Georgia, Hawaii, Idaho, Maine, Minnesota, Mississippi, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Texas and Utah, plus American Samoa, Guam, Puerto Rico and the US Virgin Islands.

The age bar is higher than the 18 that Robinhood, Underdog and FanDuel Predicts state. Section 5(a) of the customer agreement requires a customer "at least twenty-one (21) years old". The link to the sportsbook is the wallet: the Tech Account terms say funds returned from the service "can be used with both the Services and with the Fanatics Sportsbook & Casino mobile application", and that the Tech Account "is NOT a CFTC protected cleared swaps customer account".

What are Robinhood prediction markets?

A hub inside the Robinhood app, opened on 17 March 2025 with contracts "through KalshiEX LLC, a CFTC regulated exchange". The help centre now names four venues:

Event contracts are offered by Robinhood Derivatives, LLC through either KalshiEX LLC, ForecastEX, LLC or Rothera Exchange and Clearing LLC, or North American Derivatives Exchange, Inc.

Robinhood support, Event contracts overview, retrieved 2026-10-13

Rothera is Robinhood's own. The 4 June 2026 release calls it "a CFTC-licensed exchange and clearinghouse" and "a wholly-owned subsidiary of Rothera, LLC", "a joint venture managed by Robinhood Markets, Inc. and Susquehanna International Group".

Eligibility: "You must be 18 or older", a US resident, with an approved Robinhood Derivatives account. The overview page says "Maryland and Nevada residents can't trade sports event contracts" and "Michigan residents can't open new sports event contracts as of September 9, 2026." The restrictions page is stricter on Maryland: "Maryland residents can't trade event contracts." The two pages disagree; the app is the stated authority.

For Robinhood's crypto side, see the Robinhood Crypto entry.

What is Underdog Predict?

Underdog's event contract product, run by "UDM, LLC d/b/a Underdog Predict, a CFTC-registered Futures Commission Merchant (FCM)". It routes to "one or more designated contract markets (DCMs) including UDX, Kalshi, and Crypto.com | Derivatives North America". UDX is Underdog's own exchange: "Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc. ("Underdog Exchange")". The disclaimer page says "Must be 18+ and present in a state where Underdog Predict operates", and the privacy policy says Underdog does "not allow account creation for individuals under 18 years of age". No state list was found on an Underdog page: not verified. Its fantasy product is covered in the PrizePicks and DFS piece.

Does FanDuel have a prediction market?

Yes, FanDuel Predicts. The app's page says it is "the app of FanDuel Prediction Markets, a joint venture between FanDuel Group and CME Group" and that contracts "are listed by CME Group derivatives exchanges and regulated by the CFTC". Accounts sit with FanDuel Prediction Markets LLC, an FCM. The page states "18+" and "FanDuel Predicts is Available to Trade in all 50 States", with markets that vary by state.

CME's launch release of 22 December 2025 named the first five states, "Alabama, Alaska, South Carolina, North Dakota and South Dakota", and said sports contracts would run "in states where online sports betting is not yet legal, except on tribal lands". That is the line between FanDuel Predicts and FanDuel Sportsbook in the company's own words.

What have state regulators said about these apps?

Nevada acted first against the sportsbook brands. Notice 2025-90 of 12 November 2025 accepted the surrender of Flutter's Nevada registration and licences, including FanDuel Sportsbooks, and DraftKings' withdrawal of its pending applications:

It has been made clear to the Board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts. This conduct is incompatible with their ability to participate in Nevada's gaming industry.

Nevada Gaming Control Board, Notice to Licensees 2025-90, 12 November 2025

The inside of a state capitol dome, a gold star at its centre — Illustration: the dome of the Texas State Capitol. State regulators, not the apps, decide whether a sports contract counts as betting under state law. Photo: Pete Alexopoulos / Unsplash

The same notice says wagering "occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission (CFTC) or elsewhere."

Michigan reached Robinhood. On 9 September 2026 the Gaming Control Board said "Robinhood Derivatives, LLC has agreed to stop offering new sports-related event contracts to Michigan customers", to close remaining positions by 9 October, under "a court-approved agreement" that "does not concede any party's legal position".

No state regulator statement naming Fanatics Markets or Underdog Predict was found in a primary document today. The wider federal and state fight, including the Sixth Circuit appeals Michigan refers to, is set out in Is Kalshi gambling?. Polymarket's position is in Is Polymarket legal in the US?, and tax treatment in Kalshi and Polymarket taxes. State rules are in the US state guide, for example Michigan and Nevada.

Quick answers

Is DraftKings Predictions the same as DraftKings Sportsbook?

No. It is run by GUS III LLC, a CFTC-registered FCM, and lists contracts from DKEx (Railbird), CDNA and the CME. It launched on 19 December 2025. See Is Kalshi gambling? for the legal dispute.

Which states is Fanatics Markets in?

22 states and 4 territories on 13 October 2026, including California, Texas and Florida. The minimum age is 21. Rules for each state are in the US state guide.

What exchange does Robinhood use for prediction markets?

Four: KalshiEX, ForecastEX, Rothera Exchange and Clearing, and North American Derivatives Exchange. Rothera is a Robinhood and Susquehanna joint venture. Fees are compared in Polymarket and Kalshi fees explained.

Is FanDuel Predicts legal in every state?

FanDuel says it is available in all 50 states, with markets varying. CME's 2025 release said sports contracts are limited to states without legal online sports betting.

Where can I get help with gambling in the US?

The National Problem Gambling Helpline is 1-800-MY-RESET (1-800-697-3738), with call, text and chat. More options are on the responsible gambling page.

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Sources

About this piece

Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.