Bloomberg Report: CME Group, a FanDuel Partner, Planning to Offer Sports Event Contracts

• According to a Bloomberg report, CME Group is planning to offer sports event contracts by the end of the year
• CME Group entered into a partnership with FanDuel earlier this year which will allow the gaming operator to also offer prediction market contracts
• FanDuel has yet to announce if they will also offer the sports event contracts

CME Group, a FanDuel partner, is planning to offer sports event prediction market contracts to its customers by the end of 2025, according to a Bloomberg report.

According to the report, CME Group, a leading derivatives marketplace, is planning to offer sports event prediction contracts to users by the end of the year to compete with Kalshi and Robinhood in the market.

The CME Group is planning to offer the sports event and prediction market contracts through its futures commission merchants, one of which is FanDuel after the two agreed to a partnership in late August.

By the End of 2025?

Bloomberg reported that CME Group could likely self-certify sports event markets quickly, but will have to wait until the government shutdown concludes before doing so.

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

While FanDuel representatives noted they hoped to offer prediction market contracts before the end of 2025, the company never explicitly reported it would offer sports event contracts. However, both companies did say that “further details of additional offerings” will be determined in the coming months.

Offerings initially noted in the announcement include the S&P 500 and Nasdaq-100, prices of oil and gas, and key economic indicators such as GDP and CPI.

Will This Compromise FanDuel Licenses?

If FanDuel chooses to offer sports event contracts to its users through its FanDuel platform, the company could be putting its sports betting and iGaming licenses at risk.

Several state gaming regulatory bodies, including both Michigan and Ohio, have explicitly warned their licensed gaming operators to not participate in the trading of sports event contracts, or even partner with those who do.

The Michigan Gaming Control Board sent letters to licensed operators earlier this month warning them that any participation in the market would play into the board’s decision for future licensure in the state.

“The Michigan Gaming Control Board understands that certain licensees may be considering opportunities to operate, offer, or facilitate access to prediction markets, where individuals can buy, sell, and trade event contracts that are based on a future event, occurrence, or value. The MGCB further understands that many of these prediction markets would offer sporting event contracts – event contracts in which an individual acquires a position on the outcome of a sporting event or other occurrence related to a sporting event – and would not operate in accordance with state gaming laws or pursuant to state-issued gaming licenses,” Henry Williams, Executive Director of the Michigan Gaming Control Board, wrote.

The Ohio Casino Control Commission sent similar letters to its operators, which led prediction market company Kalshi to file a lawsuit against the commission and the Ohio Attorney General.

Arizona and Nevada regulatory gaming bodies have also sent similar letters to gaming operators.