SCOOP: FanDuel and other sports betting operators are market making on Kalshi. In its Q1 earnings report, FanDuel-parent Flutter announced that it was market making "on a major, third-party prediction market platform.” That platform is Kalshi, according to a person familiar with the matter. Many other sports betting operators are trading on Kalshi, too, according to a Kalshi spokesperson. “FanDuel competes with thousands of other users in a fair environment on an open platform,” the spokesperson said in a statement. “If a regular user wants to offer a better price, or market make on the same terms, they can. There’s no special deal just for FanDuel. We have hundreds of market makers on combos, including individuals.” FanDuel’s trading on Kalshi is concentrated in combo trades, where multiple individual yes-or-no predictions are linked together for a massive payout if each prediction proves correct. When a trader builds a combo, power-users and institutional players on Kalshi’s platform—known as market makers—offer competing bids to take the other side of the combo bets. From FanDuel’s perspective, market making for combo trades on Kalshi is not so different from setting parlay odds on its sportsbook. “It’s a way of us making money from our pricing expertise,” Flutter CEO Peter Jackson previously told me in an interview. “That’s ultimately what we do in our core business.” That market-making opportunity is growing quickly. Kalshi saw $21.4 billion in combo trading volume over the past 30 days, according to @AldrinResearch, accounting for 49% of all trading volume on its platform. @FanDuel and other operators’ presence on @Kalshi underscores the similarities between sports betting on prediction markets and sportsbooks. No matter how they wager on Sunday football, retail traders and casual bettors are up against professional oddsmakers.