FanDuel Sets Sights on Federally Regulated Prediction Markets with CME Group Partnership

Key Moments:

  • FanDuel is targeting a late 2025 launch of “FanDuel Markets,” offering federally regulated prediction markets on financial and economic outcomes.
  • The platform, built in partnership with CME Group, will allow users to place wagers as low as $1 on products like gold, oil, S&P 500, GDP, and inflation trends.
  • Nevada regulators have recently questioned FanDuel’s expansion, while the company maintains its state license and leaves the door open for additional partnerships.

FanDuel’s Expansion Beyond Sports Betting

Flutter Entertainment’s FanDuel is preparing to significantly broaden its operations in the United States by venturing into prediction markets regulated at the federal level. Working with Chicago Mercantile Exchange (CME) Group, FanDuel plans to introduce a brand-new platform, tentatively called “FanDuel Markets,” by the end of 2025. This initiative marks FanDuel’s most significant move outside of sports betting to date.

The platform will let users place small, fully funded “yes or no” bets on a range of financial and economic outcomes, such as stock indices, commodities, and inflation trends. Starting wagers will be as low as $1, with available contracts covering gold, oil, the S&P 500 index, and economic indicators like Gross Domestic Product (GDP) and inflation.

Regulatory Landscape and Product Scope

Although the technology behind FanDuel Markets supports sports contracts, Flutter CEO Peter Jackson shared during the Global Gaming Expo (G2E) in Las Vegas that the platform will initially steer clear of sports outcome contracts “due to ongoing legal uncertainty.” Jackson stated, “We’ll start by focusing on financial, leisure, and entertainment products.”

The collaboration with CME Group provides FanDuel access to a market overseen by the Commodity Futures Trading Commission (CFTC), while CME gains a direct line to consumer markets. According to analysts at Jefferies, this step could allow FanDuel to diversify its revenue streams and potentially mitigate risks tied to increasing state taxes on sports wagering.

Responses from Nevada Regulators

In the immediate aftermath of the CME partnership announcement, Flutter Entertainment faced scrutiny from the Nevada Gaming Control Board (NGCB). Commissioner Brian Krolicki engaged Flutter’s legal representative Erica Okerberg and FanDuel’s Senior Vice President of Public Policy & Sustainability Cory Fox in detailed discussions about the company’s future plans.

While FanDuel’s new setup enables wagers on various economic outcomes, Okerberg acknowledged that sports contracts are “under consideration” pending further regulatory clarity. She explained, “They are looking into whether sports contracts might be offered in compliance with local laws,” according to media reports. During the session, Krolicki remarked, “Reconciling federal and state matters isn’t possible today… but something’s already out of the barn door.”

Currently, FanDuel is operational in Nevada through its relationship with Boyd Gaming’s Fremont Hotel & Casino and reiterated that preserving its state license is a “top priority.” Okerberg confirmed, as well, that Flutter has “no intention to file suit anywhere.”

Potential Collaboration with Kalshi

FanDuel has not ruled out a potential partnership with Kalshi, the federally authorized prediction market operator that is amidst legal proceedings in Nevada. Management at Flutter indicated the CME arrangement does not carry exclusivity, hinting at the possibility for additional alliances.

Observers believe such cooperation could combine user-friendly betting formats with binary prediction trading, which may one day introduce elements like parlays, point spreads, and player props within the regulated event-contract environment.

Settlement with Jacksonville Jaguars

FanDuel agreed to pay $5 million to the NFL’s Jacksonville Jaguars in September as settlement for an embezzlement case involving former employee Amit Patel. Patel illicitly obtained nearly $20 million, much of which was deposited into FanDuel accounts. Although FanDuel denied wrongdoing, the incident has sparked renewed attention to responsible gambling, anti-money laundering controls, and company accountability.

FanDuel Markets: Product Scope Overview

ProductMinimum WagerCME PartnershipRegulatory Authority
Gold, Oil, S&P 500, GDP, Inflation$1YesCFTC
Sports OutcomesUnder considerationPossible future offeringPending clarity
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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