FanDuel Expands into Prediction Markets by December
FanDuel and CME Group have revealed detailed plans to introduce a new prediction markets platform through the forthcoming FanDuel Predicts app, which is scheduled to launch in December as a standalone mobile product. The initiative will allow millions of users in the United States to trade sports event contracts, subject to regulatory approval.
The prediction market app will cover baseball, basketball, football, and hockey, offering trading access in states where online sports betting is still prohibited, provided customers are not located on tribal lands. FanDuel stated that it will discontinue sports event contracts in any state that subsequently authorizes online sports betting.
The offer will also extend into financial and economic categories.
Users will be able to trade contracts based on major equity benchmarks such as the S&P 500 and the Nasdaq-100, commodity prices (including oil, gas, and gold), cryptocurrencies, and economic indicators such as GDP and CPI.
FanDuel plans to integrate its existing responsible gaming measures into the platform, including exposure management tools, spending tracking features, educational resources, and the ability to set deposit limits or self-exclude across all FanDuel products. And almost certainly, users will be able to use FanDuel promo codes.
"We can't wait to bring FanDuel's proven approach to product innovation into this dynamic sector," said Amy Howe, CEO at FanDuel. "Our partnership with CME Group allows us to leverage their deep market expertise built over decades while delivering the seamless, accessible and trusted experience our customers expect."
Due to the revenue potential of prediction markets, FanDuel parent Flutter Entertainment has surrendered its Nevada gaming licenses. Nevada had previously warned licensed sportsbooks to avoid entering the space.
The Nevada Gaming Control Board confirmed the move yesterday, adding that rival DraftKings gave up its licenses, as well.
CME positions for wider distribution
The planned release of FanDuel Predicts followed CME's indication in October that it intended to introduce financial contracts linked to sports events and economic indicators before the end of the year.
People familiar with the discussions said the initiative would place CME in closer competition with Kalshi and Polymarket, two platforms expanding their footprint in the regulated prediction markets sector with high-profile support.
CME is preparing to distribute the new contracts through futures commission merchants, including the new channel it is establishing with FanDuel. According to the individuals, CME may also make the products available through other platforms, enabling access via retail brokerages. Because the concept is still in the planning phase, the final format is subject to change.
The market reaction to the news was immediate, with DraftKings’ shares dropping up to 3.8% in post-market trading before stabilizing at a smaller decline. Earlier in the year, CME and FanDuel confirmed a partnership to develop products tied to economic indicators, but specific launch details had not been finalized.
At that time, Duffy acknowledged that sports contracts could be incorporated in future offerings, which the new rollout now reflects.
