DraftKings and FanDuel have entered the prediction market space and launched major advertising campaigns, competing with Kalshi for users in states where sports betting remains illegal. Both operators are now live in all 50 states, including California, where sports betting is banned but prediction markets are still permitted.
DraftKings remains the industry's biggest advertiser: the company spent $485 million on marketing last year, with $111 million already allocated to TV campaigns this year. On 2 September, DraftKings ran a promotion giving away free gas in five cities — Miami, Los Angeles, Dallas, Atlanta and Detroit. The stunt distributed 32,000 gallons across 2,200 cars at a cost of around $128,000. The company also released a spot featuring Kevin Hart and Nick Jonas travelling across the country placing bets.
FanDuel has spent $57.9 million on TV advertising this year. Total marketing spend last year reached $462 million. The new campaign uses a cover of Johnny Cash's 'I've Been Everywhere' with the tagline 'FanDuel is now available EVERYWHERE'. Earlier this year FanDuel replaced its CEO — Amy Howe took over from Christian Genetski. Parent company Flutter also announced a leadership change: Dan Taylor replaced Peter Jackson as chief executive on 1 October. Flutter's shares have fallen 65% over the year.
Kalshi has become the industry's third-largest spender on advertising, putting $41.1 million into TV. The company is now avoiding the term 'betting', distancing itself from past language after a Ninth Circuit ruling that cited its own advertising as evidence the product should be regulated as gambling. New spots emphasise that users 'trade' rather than bet, and that odds are set by participants rather than a bookmaker. The US Supreme Court may soon decide whether prediction markets on sports should be regulated under state gambling laws — New Jersey has already filed a petition.
