The rapid rise of prediction markets is set to redefine the U.S. wagering ecosystem in 2025, and today’s episode of iGaming Daily takes a deep dive into the operators, regulatory tensions, and political manoeuvring now shaping this emerging battleground.

Host Charlie Horner is joined by SBC Americas, Senior Journalist, Tom Nightingale, to break down why major players, including FanDuel, DraftKings, PrizePicks, and Underdog, are funnelling strategic attention and investment into sports contracts. For the biggest brands in U.S. betting, prediction markets have become the preferred “sideways market entry” into the two largest untapped jurisdictions in the country: California and Texas.

The discussion explores how this vertical has shifted from niche curiosity to front-line regulatory flashpoint, attracting intense scrutiny from lawmakers, commercial operators, and integrity watchdogs. With NBA and MLB betting scandals making headlines in recent months, Horner and Nightingale analyse the mounting concerns around data misuse, insider information, and the blurred operational boundaries between fantasy sports, prediction markets, and traditional sports betting.

Adding fuel to the fire is a strategic move few anticipated: FanDuel and DraftKings’ voluntary withdrawal from Nevada, a decision framed as an effort to pursue prediction market opportunities without the constraints of the state’s longstanding regulatory model. The episode examines the high-stakes political calculus behind the departure—as well as how it is being interpreted by other stakeholders across the U.S.

With regulators in several states issuing increasingly sharp warnings about compliance, loopholes, and consumer protections, iGaming Daily looks ahead to the defining question now looming over the vertical: Will state authorities follow through on their threats and “bring the house crashing down”, or will prediction markets become the next major growth engine of U.S. wagering?

The full analysis is available now on iGaming Daily.