CME Group and sports‑betting operator FanDuel have launched FanDuel Predicts, a retail prediction‑markets platform that will be available in Alabama, Alaska, South Carolina, North Dakota and South Dakota. The service allows users to buy and sell event contracts on a wide range of topics—including S&P 500 and Nasdaq‑100 indices, sports outcomes and economic data releases—using contracts priced between $0.01 and $0.99.
The platform is built on CME’s regulated futures and options clearinghouse, giving it the same risk‑management, settlement and regulatory oversight that underpins the exchange’s traditional derivatives business. FanDuel will handle customer onboarding, Know‑Your‑Customer verification and deposit limits, while CME will provide the clearing, settlement and risk‑management framework that ensures the market operates with the same transparency and safety as CME’s core products.
For CME, the launch represents a strategic expansion into a new, high‑volume retail market that can generate fee revenue beyond its traditional derivatives base. The move aligns with CME’s “futurization” strategy, which seeks to bring cash‑market volume onto its futures platform and broaden its revenue base across all six asset classes. By tapping into FanDuel’s 17 million‑user base, CME can increase its retail footprint and capture a share of the growing retail betting and speculative trading market.
For FanDuel, the partnership adds a new product line that leverages its large customer base and deep experience in mobile betting. The platform’s low contract prices and wide range of event types are designed to attract casual users while providing a new revenue stream that complements FanDuel’s core sportsbook and daily fantasy offerings. The initial five‑state rollout will serve as a testbed for scaling the product nationwide in 2026.
The launch occurs amid a regulatory environment where the Commodity Futures Trading Commission oversees prediction markets, but state regulators are exploring gambling‑style rules that could affect the business. The Coalition for Prediction Markets has formed to advocate for federal clarity, while competitors such as Kalshi, Polymarket, DraftKings and Fanatics are also expanding their own prediction‑market offerings.
"We can’t wait to bring FanDuel’s proven approach to product innovation into this dynamic sector," said Amy Howe, CEO of FanDuel. "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." "Our new event contracts on benchmarks, economic indicators and sports will appeal to a new generation of participants who are not active in these markets today," said Terry Duffy, CME Group Chairman and CEO. "This launch will dramatically expand our distribution and reach, connecting directly with FanDuel’s millions of registered U.S. users."
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