iGaming Weekly Recap (September 1–7, 2025): Prediction Markets Show “Significant” Potential, but in States Without Sports Betting

DraftKings CEO Jason Robins sees “very significant” opportunities in the prediction markets space, primarily in states that have not yet legalized traditional online sports betting. He believes that in states with legal sports betting, prediction markets will remain a niche, citing the UK as an example and noting limitations in risk management. DraftKings is approaching this area cautiously, actively exploring it with a pending application to the National Futures Association but refraining from rushed announcements. The company is also focusing on increasing gross profit per customer and player lifetime value, prioritizing parlays, live betting, and artificial intelligence to enhance efficiency.

Kalshi plans to introduce parlay-style contracts to the U.S. prediction market, a move aimed at bringing a popular sports betting feature to the regulated events market. The new contract type, submitted for self-certification to the CFTC, will allow users to combine multiple outcomes into a single bet, with payouts calculated as the product of each component’s payout, similar to traditional parlay bets. This structure will enable the creation of custom, multi-leg bets on a wide range of sports events, such as game outcomes, player statistics, or championships. The solution will increase liquidity and has the potential to be a significant profit driver for Kalshi, particularly for multi-game bets. Initially, the offering will focus on the NFL and college football.

Polymarket is re-entering the U.S. market after receiving a critical “no-action” letter from the U.S. Commodity Futures Trading Commission (CFTC), paving the way for resuming operations through a new, regulated subsidiary. This was enabled by the strategic acquisition of the CFTC-licensed derivatives exchange QCX and a shift in the CFTC’s regulatory stance, which has become more favorable to prediction markets. Additionally, the company saw the conclusion of an FBI investigation without charges, removing prior burdens. The return was further supported by a strategic investment from 1789 Capital and the addition of Donald Trump Jr. as a strategic advisor, adding a political dimension to the relaunch.

Pragmatic Play, a leading online casino game developer, is withdrawing its entire gaming portfolio from the U.S. sweepstakes casino market. This decision stems from the evolving regulatory landscape and legislation aiming to ban or significantly restrict these platforms, as well as a recent civil lawsuit. The lawsuit, filed in Los Angeles, accuses operator Stake.US, Pragmatic Play, and other providers of supporting an illegal gambling enterprise. Pragmatic Play’s exit is a significant blow to the sweepstakes industry, reducing game variety for players and potentially triggering a domino effect among other providers. This may also be a strategic move by the company toward future entry into the traditional, regulated U.S. online casino market.

Underdog, a daily fantasy sports operator, has entered the prediction markets space through a partnership with Crypto.com. Through this collaboration, Underdog will integrate Crypto.com’s federally regulated derivative product, CDNA, directly into its app, enabling trading of contracts on sports event outcomes. This strategic move will allow Underdog to offer these markets in 16 states, many of which have not yet legalized traditional sports betting, creating a new revenue stream and positioning the company as a pioneer in the industry. Underdog will be the only company offering fantasy sports, sports betting, and prediction markets within a single, unified app, while emphasizing its commitment to responsible gaming.