In a significant move that could reshape the US gaming landscape, FanDuel is set to launch a groundbreaking prediction markets platform this December. The announcement comes from parent company Flutter Entertainment, revealing ambitious plans to expand beyond traditional sports betting.
A Strategic Partnership
The new venture represents a joint collaboration between Flutter Entertainment and CME Group, one of the world's leading derivatives marketplaces. This partnership combines FanDuel's gaming expertise with CME's extensive market knowledge, creating a powerful alliance in the prediction markets space.
FanDuel Predicts will operate as a standalone application offering sports event contracts rather than conventional betting. This strategic approach allows the platform to function in states where online sports betting remains illegal, effectively bypassing current regulatory restrictions.
Platform Features and Flexibility
The innovative platform will enable users to trade contracts on various sports outcomes, including baseball, basketball, football, and hockey. Crucially, the system is designed with built-in adaptability - if any state legalises online sports betting in the future, FanDuel's platform can seamlessly transition to offering standard sports wagering.
Beyond sports, the platform will diversify into financial and economic markets. Users will have access to event contracts covering major financial benchmarks including the S&P 500 and Nasdaq-100, along with commodities such as oil, gas, and gold. The platform will also feature cryptocurrencies and key economic indicators like GDP and CPI.
Responsible Trading and Education
Emphasising consumer protection, the platform will incorporate comprehensive responsible trading tools to help users manage exposure and track spending. According to the official press release, customers will find educational resources within the app to learn about prediction markets and how to buy and sell event contracts effectively.
FanDuel CEO Amy Howe expressed enthusiasm about the venture, stating: "We can't wait to bring FanDuel's proven approach to product innovation into this dynamic sector. Our partnership with CME Group allows us to leverage their deep market expertise built over decades while delivering the seamless, accessible and trusted experience our customers expect."
Competitive Landscape and Market Context
This development follows last week's announcement from DraftKings, FanDuel's main sports betting rival, which revealed plans for its own similar platform called DraftKings Predictions. DraftKings CEO Jason Robins confirmed their platform would launch "in the coming months," setting the stage for intensified competition in this emerging market segment.
The timing is particularly significant given the current US regulatory environment. Sports betting remains illegal in 11 states, while 38 states and Washington DC have introduced some form of sports betting through either online sportsbooks, retail locations, or both. The new prediction markets approach could potentially unlock markets previously inaccessible to traditional sports betting operators.
However, the companies have noted important restrictions: sports contracts will not be available on tribal lands, and all offerings remain subject to appropriate regulatory filings before launch.
