With the prediction markets sector fast expanding, senior sportsbook executives are pushing back against claims that these platforms threaten the regulated betting ecosystem.

Speaking on CNBC Television, FanDuel‘s CEO, Amy Howe, dismissed concerns that prediction markets are drawing meaningful spend away from legal sportsbooks. Howe argued that the products are fundamentally different and that prediction markets lack the breadth and real-time engagement that define regulated sports betting.

Howe described prediction markets as closer to Daily Fantasy Sports than a full sportsbook, particularly in states such as California where sports betting remains illegal. While acknowledging their growth, she said they cannot match the depth of wagering options available in regulated states, including extensive in-play markets and event-by-event betting.

“We’re not terribly concerned that there’s going to be a big cannibalisation in states that are legal,” Howe said. She added that FanDuel’s long-term focus remains on securing legislative approval in major holdout states such as California and Texas rather than competing with alternative products operating in regulatory grey areas.

Integrity was a central theme of the discussion. Howe addressed ongoing caution from the National Football League and the American Gaming Association, both of which have raised concerns about the oversight of prediction markets. Howe countered that regulated sportsbooks are better positioned to protect sporting integrity due to established monitoring systems and formal relationships with leagues.

She cited an example where FanDuel flagged suspicious betting activity involving an NBA player prior to tip-off and coordinated with league officials to intervene. According to Howe, this type of cooperation is only possible within a regulated framework and highlights why legalisation is more effective than prohibition in addressing fraud and match manipulation. She also reiterated industry estimates that place the US illegal betting market at roughly $675bn annually.

Taxation remains another point of friction. Licensed sportsbooks face significant state tax burdens, including New York’s 51% rate, while prediction markets often operate without equivalent fiscal obligations. Howe suggested this imbalance enables prediction platforms to reinvest more aggressively in customer acquisition rather than contributing to public revenues.

CNBC reported that one major prediction market has seen trading volumes increase by nearly 1,400% in the weeks leading up to the Super Bowl, attracting growing regulatory scrutiny. The platform has since announced plans to establish an independent oversight committee and publish transparency reports as it attempts to address compliance concerns.

The segment concluded by noting that, despite heightened interest, even high-profile figures such as Tom Brady remain reluctant to publicly predict a Super Bowl winner, reflecting the commercial and reputational sensitivities surrounding the event.