FanDuel Partners With CME Group to Enter Prediction Markets

• FanDuel today announced a new partnership with CME Group, a leading derivatives marketplace
• The partnership will allow FanDuel to offer event contracts to users through a new platform later this year
• Initial offerings will include the S&P 500 and Nasdaq-100, prices of oil and gas

FanDuel is officially entering the prediction markets space.

FanDuel announced today a new partnership with CME Group, a leading derivatives marketplace, to launch new products and expand access to financial markets for FanDuel customers. The companies will develop new event-based contracts with defined risks, according to the official announcement.

The products will be available on a FanDuel platform later this year.

Event-Based Contracts Available in 2025

The new partnership will allow FanDuel customers to “express their views multiple times a day on a wide range of markets with simple ‘yes’ or ‘no’ positions for as little as $1.”

“Individual investors are increasingly sophisticated and continually pursuing new financial opportunities,” said Terry Duffy, CME Group Chairman and Chief Executive Officer. “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.”

As part of the partnership, CME Group and FanDuel will form a new joint venture, under which they will operator a non-clear futures commission merchant that will provide access to these event-based contracts through FanDuel.

The new event-contracts will be pending a Commodity Futures Trading Commission (CFTC) review.

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

Will Sports Event Contracts Be Available?

While sport event contracts were not specifically mentioned in the release, the companies did note that “further details of additional offerings” will be determined in the coming months.

Prediction market companies such as Robinhood and Kalshi both offer sports event contracts, and most recently introduced football contracts featuring spreads and point totals, to their customers.

Companies such as Robinhood and Kalshi believe that state regulatory bodies do not have the right to intrude on the government’s “exclusive” authority to regulate prediction market, filing lawsuits in New Jersey, Nevada, and Maryland to defend its practices. These companies believe the CFTC is the only regulatory body that can legally block contracts from being offered to customers.

If FanDuel chooses to offer sports event contracts, it could theoretically offer the contracts to customers in all 50 states.