FanDuel has become the first of the big-name sportsbooks in the US to take a step into the world of prediction markets.
The popular sports betting app has announced a partnership with derivatives marketplace CME Group, which will see the launch of a new platform for events contracts.
The joint venture will operate as a non-clearing futures commission merchant (FCM) that will give FanDuel users access to event-based contracts.
The new product is expected to launch later this year, subject to regulatory approval and oversight from the Commodity Futures Trading Commission (CFTC).
Chicago-based CME Group already operates a number of exchanges including the Chicago Board of Trade, the Chicago Mercantile Exchange, the Commodity Exchange and the New York Mercantile Exchange.
What Does This Mean For FanDuel Users?
FanDuel’s range of products includes its sports betting site and online casino, but there has so far been no mention of sports events within the new product.
The platform will enable users to take simple yes or no positions for as little as $1 on benchmarks such as the S&P 500 and Nasdaq-100, prices of oil and gas, gold, cryptocurrencies, and key economic indicators such as GDP and CPI.
The firm is no doubt adopting a wait-and-see policy with regard to sports in light of the recent legal wrangles that have enveloped Kalshi.
The New York City-based financial exchange and prediction market introduced sports betting event contracts to US users in January, but it is presently operating under the shadow of several state and federal lawsuits, while the industry tries to decide whether it is offering a financial service or a sports betting product.
Will DraftKings Be Next?
The news that CME Group and FanDuel have partnered to develop an innovative event contracts platform will have caught the attention of sports betting rivals DraftKings.
In its recent Q2 2025 earnings call, DraftKings CEO Jason Robins stated that prediction markets was an area for possible expansion in future, but for now the firm was keeping an eye on developments.
“Being an early mover in a space like this can be important,” he said.
“I also think that being a literal first mover may not be as important, and there are downsides to that as well.
“We’re evaluating. Obviously, we have a lot of stakeholders – state regulators, relationships with tribes and others – we want to consider as we think about what our different options are.
“We’re keeping a close eye on it and figuring out what we want to do.”
FanDuel And CME Reaction
Terry Duffy, CME Group chairman and chief executive officer, said: “Individual investors are increasingly sophisticated and continually pursuing new financial opportunities.
“To meet this demand, we have created this innovative partnership, which will operate a non-clearing FCM.
“Together, our event-based products will appeal to the growing public interest in markets, and we will provide education to attract a new generation of potential traders not active in derivatives today.”
Amy Howe, FanDuel Group’s chief executive officer, said: “Partnering with CME Group will unlock our ability to bring even more new and engaging products to FanDuel’s fast-growing customer base.
“We believe there is potentially a wide audience for trading event-based markets and we want to provide a platform that allows our customers to engage in this activity.
“We are excited to be partnering with CME Group to design new and engaging products, combining innovation with best-in-class regulatory compliance and consumer protections.”
Jim Munro is a betting industry and gambling expert who has been a national newspaper journalist for over 30 years, predominantly at The Sunday Times and The Sun, where he wrote a weekly soccer betting column. Jim also worked on the launch of Virgin Bet with Gamesys and was subsequently head of editorial at LiveScore, the sports media and betting group.
