FanDuel and CME Group Roll Out FanDuel Predicts

FanDuel, CME Group launch prediction markets in five US states

By Reuters

Dec 22 (Reuters) - Sports betting firm FanDuel and derivatives exchange heavyweight CME Group on Monday announced the launch of their prediction markets platform in five U.S. states, as the red-hot asset class continues to draw in new entrants.

Initial State Launch and Rollout Plan

The platform has been launched in Alabama, Alaska, South Carolina, North Dakota and South Dakota, with a phased national rollout to other U.S. states through early 2026.

Platform Background and Development

The launch builds on the tie-up between FanDuel and CME Group unveiled earlier this year to develop a new event-based contracts platform.

Dubbed "FanDuel Predicts," the platform will allow customers to trade event contracts on global benchmarks such as the S&P 500, Nasdaq-100 and prices of oil and gas as well as key economic indicators.

Markets and Sports Coverage

Apart from financial markets, the platform will also offer sports contracts across baseball, basketball, football, and hockey in states where online sports betting is not yet legal.

Prediction Markets Momentum

Prediction markets allow users to bet on the outcomes of real-world events and have surged into the mainstream since the 2024 U.S. presidential race, drawing in traditional financial heavyweights and newer players.

Analysts say CME is looking to establish itself as the preferred exchange for sportsbooks looking to enter the booming prediction markets, as it seeks to tap the retail craze for prediction markets.

CME Revenue Potential and Competitive Landscape

"This launch is a pivotal step for expanding the reach of our products to FanDuel's millions of registered users across the U.S.," said Lynne Fitzpatrick, CME's chief financial officer.

CME could garner more than $300 million in revenue from the FanDuel joint venture alone should it reach the size of Kalshi and Robinhood's partnership, according to Piper Sandler analysts.

Last week, sports-betting giant DraftKings also announced the launch of its prediction markets platform, with CME as the exchange venue at launch.

Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shailesh Kuber