FanDuel has introduced a new platform in Alabama that allows users to make paid predictions on sporting events, even as the state continues to prohibit sports gambling.

FanDuel Predicts runs under federal oversight from the Commodity Futures Trading Commission, which regulates commodities and derivatives markets. Because the service is governed by federal law, it is permitted to operate in states where sports wagering remains illegal. Alabama is among five states included in the initial rollout that began late in 2025.

Rather than placing conventional bets, users purchase event-based contracts priced between 1 cent and 99 cents. Each contract is tied to a "yes" or "no" outcome and pays out $1 if the prediction is correct. FanDuel has said the platform includes safeguards such as identity verification, deposit limits and self-ban options.

WAFF reported that State House Minority Leader Anthony Daniels said he thinks the launch exposes a gap in Alabama's gambling laws. He noted that prediction markets have existed for years under federal regulation, but incorporating sports outcomes introduces a new issue that state lawmakers have not addressed.

Alabama has revisited the idea of expanding legalized gambling multiple times in recent years, but broad proposals have repeatedly failed to clear the Legislature. Like in 2024, the House approved a plan that would have created a state lottery and allowed casino gaming and sports betting, only for the effort to unravel in the Senate. The bill narrowly failed by just one vote in the Alabama House, but WAFF reported that Daniels believes renewed efforts could succeed by 2026 or 2027.

Gambling expansion legislation has stalled, and state officials, including Alabama's Attorney General Steve Marshall, are focused on enforcement against illegal operations like unregulated slot machines.

Louisiana, Mississippi, Florida and Tennessee all have legalized sports gambling while Alabama and Georgia continue to push towards the same. FanDuel Predicts is currently operating legally under federal rules in Alabama.