DraftKings, Fanatics, and FanDuel demand parity in prediction market consumer rules
DraftKings, Fanatics, and FanDuel on Monday called for identical consumer safeguards whether customers access prediction markets directly through a Designated Contract Market or through a Futures Commission Merchant. Robins is quoted saying the rules should be the same for both channels. The push comes as prediction market growth accelerates and traditional gaming operators seek parity in regulatory treatment with regulated event-contract platforms.
The parity push strikes at a structural advantage CFTC-regulated platforms now enjoy. DCM direct access lets Kalshi and Polymarket skip the FCM layer and its associated consumer protections, including know-your-customer checks and responsible-gaming tools that sportsbooks must maintain. DraftKings, Fanatics, and FanDuel want that gap closed before event contracts capture more retail share. The CFTC's simultaneous branding and formatting crackdowns show the agency is already tightening oversight, but the gaming operators want rulemaking, not enforcement discretion.
If they succeed, compliance costs for DCMs would rise toward sportsbook levels, blunting the user-acquisition edge that let Novig open at $125 million. The lobbying also frames prediction markets as gambling competitors in Congress, where Schiff-Curtis legislation would ban sports contracts entirely. For traders, tighter safeguards mean slower onboarding and possibly higher fees, but also less platform risk of a federal shutdown.