US Gambling Giants DraftKings and FanDuel Ramp Up Pressure on Kalshi

The US gambling industry is currently witnessing a massive showdown between established sports betting giants DraftKings and FanDuel and the newcomer Kalshi. As the major players expand their presence to all 50 states, Kalshi is facing increased legal scrutiny. The core of the dispute lies in the choice of words: Kalshi originally advertised itself as the first legal app for sports betting in all 50 US states but is now desperately trying to avoid the term betting.

The competition is not sleeping. DraftKings and FanDuel have launched their own prediction markets and are letting US citizens know that their apps are now available everywhere. States without legal sports betting, such as California, are particularly targeted by these campaigns. In these regions, trading in predictions is currently still permitted, creating a legal gray area that providers are now aggressively exploiting.

Numbers and facts

DraftKings has proven to be the most big-spending player in the industry. Last year, the company spent a staggering $485 million on marketing. In the first months of 2026, $111 million has already been invested in TV campaigns alone. To maximize attention, DraftKings launched a high-profile promotion on September 2: free fuel was distributed in cities like Miami, Los Angeles, Dallas, Atlanta, and Detroit. In total, the company gave away 32,000 gallons of gas to more than 2,200 cars. At a price of about $4 per gallon, this campaign cost around $128,000.

FanDuel is not far behind. With TV advertising spend of about $57.9 million this year and total marketing costs of $462 million last year, the company remains a heavyweight. Kalshi follows in third place with $41.1 million spent on television advertising so far this year. Despite these sums, FanDuel's parent company, Flutter, is struggling with a massive loss in value. The share price is 65 percent below the previous year's level. To turn things around, a change in leadership has been implemented: Dan Taylor will replace Peter Jackson as CEO on October 1.

Background

Kalshi's legal status remains precarious. The Ninth Circuit Court of Appeals cited Kalshi's own advertising in a judgment as proof that the product should be classified as gambling. CEO Tarek Mansour, however, vehemently defends his company. He claims that the term betting was only used colloquially, while users were actually trading.

"Kalshi does not set the odds, other users do. Unlike sportsbooks, Kalshi lets users trade on anything." - Tarek Mansour, CEO of Kalshi

Analysts like David Katz from Jefferies, however, doubt that Kalshi poses a serious threat to the market shares of DraftKings. He described Kalshi's offerings as primitive compared to the regulated sports betting markets. Nevertheless, DraftKings and FanDuel are preparing to fully utilize their resources once state regulatory authorities officially legalize and tax prediction markets.

Why it matters for German players

For German players, the situation in the USA is an interesting example of market dynamics but has no direct impact on the local legal situation. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) is the decisive set of rules. While in the USA, over 50 states are struggling with definitions, clarity prevails in Germany thanks to the Joint Gambling Authority of the States (GGL). Providers like DraftKings or FanDuel do not currently hold a German license for online slots or sports betting on the official whitelist.

German customers should ensure they only play with providers licensed by the GGL to benefit from strict player protection measures. These include the monthly deposit limit of 1,000 euros via the LUGAS system and the stake limit of one euro per spin for virtual slot games. Prediction markets, such as those operated by Kalshi in the USA, are not licensed as legal gambling in this form in Germany and would fall under the strict oversight criteria of the GGL.

What it means for GGL-licensed casinos

The development shows that even large international brands must invest heavily in marketing to compete against new niche providers. GGL-licensed casinos in Germany have the advantage of legal certainty but must operate in a highly regulated environment that would hardly permit aggressive marketing actions like giving away gasoline. The focus in this country is more on compliance with advertising guidelines and the state's channeling mandate.