FanDuel Expands into Prediction Markets Through CME Group Deal

FanDuel is moving beyond sports betting and teaming up with CME Group to bring financial event contracts to U.S. customers. The partnership will give FanDuel users a chance to trade on big-picture economic themes rather than just game outcomes.

Good to know

• FanDuel and CME Group will run a joint venture as a non-clearing futures commission merchant.
• Products will cover stock indexes, commodities, crypto, and economic indicators.
• Sports contracts are not part of the initial plan, keeping regulators at ease.

FanDuel CEO Amy Howe said the new venture will let customers explore new types of trading. “Partnering with CME Group will unlock our ability to bring even more new and engaging products to FanDuel’s fast-growing customer base,” Howe explained. “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.”

The lineup expected later this year includes S&P 500 and Nasdaq-100 indexes, gold, oil and gas benchmarks, cryptocurrencies, and key data points like GDP and CPI.

Sports are off the table?

One detail stood out in the announcement—there was no mention of sports trading and contracts tied to NFL, NBA, or other sports outcomes. FanDuel clarified that only the products listed in the press release are part of the launch, with other offerings to be revealed later. That approach keeps the company clear of unnecessary regulatory fights at the state level. Flutter Entertainment CEO Peter Jackson made that point clear:

“The complexity here is managing regulatory relationships and stakeholders. When you think about what our primary goal is, it’s about getting to as many states. We can’t let what’s happening in the prediction markets upset that.”

CME Group sees the venture as a way to capture a younger audience that may not yet trade derivatives. CME Group chairman and CEO Terry Duffy said:

“Individual investors are increasingly sophisticated and continually pursuing new financial opportunities. 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.”

FanDuel, owned by Flutter Entertainment, already has experience with exchange-based markets through BetFair in Europe. The move into event contracts feels like a natural extension of that expertise. Reports earlier this year suggested FanDuel even explored collaboration with Kalshi, a company that runs prediction markets on sports, politics, and entertainment. But rather than diving into sports-linked contracts now, FanDuel appears content focusing on financial markets that already fall under the watch of the Commodity Futures Trading Commission.