Bernie McTernan

McTernan says sports betting/investing in sports is already legal nationwide via prediction markets, so state legislators can no longer keep constituents from betting. Legalization therefore becomes a question of whether states want the tax revenue. He expects this to be a catalyst for more states to legalize sports, supporting online sports betting.

McTernan argues prediction markets should be viewed as an asset rather than a threat to DraftKings and Flutter. Although he still thinks online sports betting offers a better sports product in regulated markets, the non-sports prediction-market opportunity is substantial and the prediction-market TAM is larger than online sports betting because it can reach the unregulated half of the country, 18-to-20-year-olds, and non-sports users not directly competed for by DraftKings/FanDuel. Flutter plans to invest $250 million in prediction markets in 2026 and DraftKings may invest an incremental $200 million, with ROI on those investments the key debate.