FanDuel, CME to launch financial prediction markets in U.S.

World’s largest derivatives exchange CME Group and U.S. sports betting leader FanDuel said they will form a joint venture to launch financial event contracts later this year, marking FanDuel’s entry into the fast-growing prediction markets industry. 

The products, pending regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC), will allow FanDuel customers to take “yes” or “no” positions on benchmarks including the S&P 500 and Nasdaq-100, oil and gas prices, gold, cryptocurrencies, and key economic indicators such as GDP and consumer price inflation. Contracts will be available for as little as $1 and listed on CME exchanges.

The venture will operate as a non-clearing futures commission merchant (FCM), the companies said.

“Individual investors are increasingly sophisticated and continually pursuing new financial opportunities,” Terry Duffy, CME Group chairman and CEO, said in a statement. “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.”

FanDuel, owned by Dublin-based Flutter Entertainment, said the partnership would broaden its reach beyond sports betting into regulated financial markets. “Partnering with CME Group will unlock our ability to bring even more new and engaging products to FanDuel’s fast-growing customer base,” FanDuel CEO Amy Howe said.

The announcement comes as prediction markets gain traction in the U.S. Rival Kalshi already offers contracts on financial, political and entertainment outcomes, as well as sports, but has faced legal battles with multiple states over its sports products. FanDuel’s new platform did not mention sports contracts, signaling a cautious regulatory stance.

“The complexity here is managing regulatory relationships and stakeholders,” Flutter CEO Peter Jackson said last week. “When you think about what our primary goal is, it’s about getting to as many states. We can’t let what’s happening in the prediction markets upset that.”