New survey data suggests more sports bettors prefer Kalshi to FanDuel, and the platform is only slightly behind market leader DraftKings. 

Truist Securities asked respondents which product they view as the best for both online sports wagering and prediction markets, and 20% chose DraftKings sportsbook, followed by Kalshi at 17%. FanDuel sportsbook was third at 15%.

The company began offering sports markets at the start of last year, and although it has faced legal challenges, its market range has expanded rapidly. It offers a wide range of esports markets in addition to all other major sports. 

Truist analyst Barry Jonas said the reasons for choosing one platform over another varied among gamblers. He stated: “Reasons of preference varied, with 39% pointing to the overall experience,19% success rate, 13% for best interface, and just 11% for rewards.”

Kalshi Leading Prediction Market Platform

While DraftKings and FanDuel have launched their own prediction market platforms, the survey data suggests that Kalshi is the most popular platform. 

“Kalshi (17%) was viewed as having the best PM product, followed by DraftKings Predictions (8%), Polymarket (7%), and Robinhood PM (5%), with FanDuel Predicts trailing slightly (4%),” Jonas told Casino.org. 

Prediction markets are, unsurprisingly, most popular in states with limited legal sports betting. California has the highest usage rate, with 16% of survey respondents stating they used the platforms, followed by Texas at 9% and Florida at 7%. 

DraftKings and FanDuel executives have claimed that prediction markets are not yet impacting their market share in states with legal online sports betting. 

Their increasing popularity, however, has harmed the companies’ stock prices. DraftKings’ price has dropped by over 40% in the past six months, while Flutter, the parent company of FanDuel, has seen its price fall by over 60%. Tax increases in the UK, where the company operates several betting brands, have also negatively impacted the company. 

Prediction Markets Ramp Up Advertising

The American Gaming Association (AGA) has reported that prediction markets are spending more on advertising, while tribal and state-operated sportsbooks are spending less. 

DraftKings and FanDuel both left the AGA last year, with the organization opposing their entry into prediction markets. 

In a press release last week, the AGA said nearly half of digital sports betting ads now come from prediction market platforms. 

The AGA said: “Kalshi is currently the most visible sports betting brand by digital ad impressions, with consumers exposed to its advertising approximately 5.2 billion times this year, compared with 2.9 billion impressions for FanDuel, the next most frequent sportsbook advertiser.”

The company’s marketing campaigns appear to be working, as more users are engaging with prediction markets. 

AGA President and CEO Bill Miller said the rise of prediction markets is a risk to the integrity of sports. He stated, “Confidence in your wager – and in the integrity of the games – starts with a fair and compliant betting market.” 

“That’s why it’s so important that everyone offering sports bets in the U.S. comply with state and tribal regulations, ensuring that consumers are protected.”  

The group has been outspoken in its opposition to prediction markets, but faces an uphill struggle to slow down the industry’s growth. Kalshi and Polymarket have been highly active in forming partnerships in the media, sports, and entertainment. 

Polymarket recently signed a deal with BLAST, making it the organization’s official prediction market platform, signalling an increasing acceptance of the platforms in esports.