Kalshi vs DraftKings and FanDuel: prediction market or sportsbook?

Is Kalshi a sportsbook?

Kalshi is not a sportsbook. Kalshi says the CFTC regulates it as a designated contract market, the federal license for an exchange that lists futures, swaps or options. A Kalshi sports market is an event contract: it pays $1 if the outcome happens and nothing if it does not, and its price, between 1 and 99 cents, is whatever other members will pay.

DraftKings and FanDuel Sportsbook are sportsbooks, licensed in each state where they take bets, at odds they set. The CFTC's prediction markets page says regulated exchanges and brokers "do not take a side of the trade." A sportsbook does.

Who regulates Kalshi, DraftKings and FanDuel?

Kalshi answers to a federal regulator, the CFTC, and DraftKings and FanDuel Sportsbook answer to state gaming regulators. The CFTC's position is that federally regulated prediction markets can operate in all 50 states.

DraftKings' offer terms say it can change a promotion only with approval from the regulators in each eligible jurisdiction, and you must be physically located in an eligible state to bet. Kalshi's federal license has not settled the state question, as the legal section below shows.

Kalshi vs DraftKings: who is on the other side of your bet?

On Kalshi you trade with another member, while at DraftKings or FanDuel Sportsbook the book itself takes your bet. Kalshi says it has no stake in outcomes and earns transaction fees. One side posts an order and waits (the maker), the other accepts it (the taker), and Kalshi's fee schedule charges the taker and, on listed series, the maker.

A sportsbook sets the price, takes your stake and pays you if you win. Its margin, often called the vig, sits inside the odds. For example, a line at -110 on both sides implies 52.38% for each side, 104.76% in total; the extra 4.76 points are the margin. That is arithmetic, not a quote of any current line.

How do Kalshi fees compare with sportsbook odds?

Kalshi charges a visible fee and a sportsbook charges inside the odds, so compare what you keep if you are right. As of Kalshi's July 7, 2026 fee schedule, the taker fee is round up(0.07 × contracts × price × (1 − price)) on a standard series, or $1.75 on 100 contracts at 50 cents. Resting orders pay nothing unless the series carries maker fees, as pro football and pro baseball game series (KXNFLGAME, KXMLBGAME) do: about $0.44 per 100 contracts at 50 cents.

DraftKings Predictions charges $0.02 per contract at most prices from 30 to 94 cents, per its fee disclosure. FanDuel Predicts charges two cents per dollar of potential payout, a $2 fee on a $100 payout, per FanDuel's payouts page. Both come to $2.00 on 100 contracts at 50 cents.

On a 50/50 outcome, $100 risked returns about $93.24 of profit on a Kalshi taker order, $92.31 on either Predicts app and $90.91 on a sportsbook bet at -110. Real prices vary and exchanges have a bid-ask spread, so treat this as an illustration. The Kalshi fee calculator runs the formula for any price.

How old do you have to be for Kalshi, DraftKings and FanDuel?

Kalshi's minimum age is 18, while DraftKings and FanDuel Sportsbook require 21 in most states. Kalshi also asks for document verification if needed.

DraftKings' current offer terms list its sportsbook in 27 states plus DC and Puerto Rico. The age is 21, or 18 in DC, New Hampshire, Puerto Rico and Wyoming.

FanDuel's state map lists FanDuel Sportsbook in 24 states plus DC and Puerto Rico, at 21, or 18 in DC, Kentucky and Wyoming. Most other states, including California, Texas and Florida, get FanDuel Predicts instead. DraftKings Predictions and FanDuel Predicts both state 18+.

Is Kalshi legal in states where DraftKings and FanDuel are?

Kalshi's sports contracts are legal under federal law in the CFTC's view, but federal appeals courts are split on whether states can enforce gambling laws against them. DraftKings and FanDuel Sportsbook avoid that fight by holding a license in each state. These are the federal court actions as of October 23, 2026.

State court orders also limit some Kalshi contracts in Washington, Michigan and Nevada, as listed in Is Kalshi legit? Check what the Kalshi app offers where you are before you deposit.

Can you cash out early on Kalshi, DraftKings and FanDuel?

Kalshi lets you sell contracts before the event ends, and DraftKings and FanDuel Sportsbook offer Cash Out on some bets. A Kalshi sale is an order at the current market price, so another member buys what you sell, and the trading fee applies.

Because the sportsbook is the other side of your bet, a sportsbook Cash Out is the book's own offer to settle early at an amount it sets. DraftKings' terms say a cashed-out qualifying bet voids its welcome promotion. FanDuel Predicts lets you sell early when available, for the same two cents per dollar of original potential payout.

What are DraftKings Predictions and FanDuel Predicts?

DraftKings Predictions and FanDuel Predicts are the sportsbook companies' own prediction market apps. Both are federally regulated brokers (futures commission merchants) that pass your order to exchanges.

DraftKings' terms name Gus III LLC, doing business as DraftKings Predictions, a CFTC-registered futures commission merchant and NFA member. Its fee disclosure lists CDNA, DKeX and CME markets. FanDuel says FanDuel Predicts accounts are carried by FanDuel Prediction Markets LLC, a registered futures commission merchant.

Kalshi vs FanDuel and DraftKings bonuses: credits or bonus bets?

Kalshi's signup rewards depend on your referral offer and may be trading credits, while DraftKings and FanDuel Sportsbook pay bonus bets. Kalshi's referral FAQ says amounts vary by offer, an "up to" amount is a maximum, and rewards may be trading credits with withdrawal restrictions, some of which must be traded before they can be withdrawn. doddo's Kalshi page tracks the published credit terms.

DraftKings' welcome offer, valid October 12 to November 29, 2026, pays $200 in bonus bets for a first $5+ sportsbook bet, or $200 in Predictions Dollars for a first $5+ trade on DraftKings Predictions, not both. Either arrives as $50 at once plus three $50 claims over 21 days. Bonus bets last 7 days and pay only the winnings, not the stake. Predictions Dollars cannot be withdrawn and expire after one year, but profits from them go to your cash balance.

FanDuel's promo page lists a sportsbook offer valid October 13 to 25, 2026: bet $5 or more on 7 days in a row and get $50 in bonus bets per day, up to $350. Bonus bets and credits are not cash; doddo's DraftKings bonus conversion page explains how bonus bets turn into an estimated cash value.

How are Kalshi and sportsbook winnings taxed?

Sportsbook winnings are gambling income, and the tax treatment of Kalshi event contracts is not settled. The IRS says sports betting winnings are fully taxable, payers issue Form W-2G for certain winnings, and losses are deductible only if you itemize, up to your winnings.

We found no IRS guidance on how event contract profits are taxed. Kalshi's help center says it issues a 1099-MISC for credits and rewards when IRS thresholds are met, and DraftKings' Predictions terms say event contract payments may be reported on Form 1099. Ask a tax professional.

Kalshi, DraftKings or FanDuel: which fits you?

Your age and state decide most of it. These points describe published terms, not odds of winning.

• You are 18 to 20: the sportsbooks are 21+ in most states, while Kalshi and both Predicts apps take 18-year-olds.
• Your state has no online sportsbook: Kalshi or a Predicts app may still be open, subject to the court cases above.
• You want the lowest cost per trade: Kalshi's taker fee is $1.75 per 100 contracts at 50 cents against $2.00 at the Predicts apps, and resting orders cost less.
• You want a fixed welcome offer: DraftKings and FanDuel publish theirs, in bonus bets.
• You juggle several offers: doddo's Money Inbox lists sportsbook and prediction market offers with deadlines and estimated values. New accounts are on a waitlist for now.
• Every option can lose your whole stake. If it stops feeling like a choice, see responsible gaming resources.