Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioAfter months of speculation, FanDuel has officially announced its expansion into prediction markets, announcing a partnership with CME Group to create a federally regulated platform for event contracts.
The joint venture will operate as a non-clearing futures commission merchant (FCM) under the oversight of the Commodity Futures Trading Commission (CFTC).
FanDuel Plays it Safe: Sports Left Off the Table
Customers will be able to take positions as small as $1 on yes/no outcomes on topics such as:
- The S&P 500 and Nasdaq-100
- Oil and gas
- Gold
- Cryptocurrencies
- Key US economic data, such as GDP and CPI
FanDuel said the platform is expected to go live later in 2025, pending regulatory approval. The company says it will determine additional offerings in the coming months.
Amy Howe, CEO of FanDuel Group, said the partnership will allow FanDuel to offer more products to its users:
“We believe there is potentially a wide audience for trading event-based markets, and we want to provide a platform that allows our customers to engage in this activity. We are excited to be partnering with CME Group to design new and engaging products, combining innovation with best-in-class regulatory compliance and consumer protections.”
The announcement of the CME partnership finally puts to rest months of speculation on whether and how FanDuel will enter the prediction market space. In June, reports emerged that the operator had eyed a deal with Kalshi, the leading prediction platform in the US.
However, the dynamics of that relationship would’ve been complicated. That’s because Kalshi has pivoted into sports contracts, which now account for the majority of trading on the platform. Just a few days ago, Kalshi self-certified to offer point spreads, totals, and touchdown prop betting ahead of the football season.
Why Sports Are Off the Table: Kalshi’s Legal Battles
FanDuel’s omission of sports event contracts is striking, given its dominance in sports betting. However, it is likely waiting to see the outcomes of the numerous legal battles Kalshi is fighting.
Kalshi’s aggressive push into sports events has become the test case for whether such products fall under federal or state jurisdiction.
The company has fought back against state gambling regulators, winning dismissals of cease-and-desist orders in New Jersey and Nevada.
Still, there are also setbacks. Earlier this month, a Maryland judge refused to grant Kalshi a preliminary injunction in its case against the gambling regulator. Still, the two parties agreed for Kalshi to continue operating while the case is ongoing.
Adding to the pressure, Native American tribes have also taken up a fight. In July, three California tribes sued the platform. They alleged it offers illegal sports betting, violating the Indian Gaming Regulatory Act (IGRA) and threatening tribal sovereignty.
Additionally, over 60 federally recognized tribes have supported the New Jersey regulator’s appeal, which challenges Kalshi’s legal standing.
Complicating matters further is the uncertainty surrounding Brian Quintenz, a former CFTC commissioner who now sits on Kalshi’s board. Quintenz is President Trump’s nominee to head the agency again. However, his confirmation vote has been repeatedly delayed amid questions about conflicts of interest tied to his role with Kalshi.
By steering clear of sports for now, FanDuel is effectively letting Kalshi take the lead in testing legal boundaries. If Kalshi ultimately prevails in court, FanDuel will be well-positioned to follow. Until then, it will prioritize certainty and compliance with federally approved financial event contracts.
Flutter’s Experience with Predictions
FanDuel’s parent company, Flutter, is not new to prediction markets. Flutter owns the Betfair Exchange, one of the world’s largest and oldest betting exchanges.
Betfair, which has operated for over two decades in Europe, allows customers to bet directly against each other. They can set their own odds and create liquidity.
The experience with Betfair gives Flutter a playbook that it can adapt to the growing US prediction market sector.
What’s DraftKings’ Move Going to Be?
FanDuel’s announcement will undoubtedly put pressure on DraftKings’ next move. The two sports betting market leaders have signaled ambitions in prediction markets, so DraftKings will likely follow up with a similar announcement.
A CFTC ruling earlier this month effectively cleared the way for platforms like Polymarket (and potentially DraftKings) to operate legally in the US prediction markets.
The agency announced that it will not enforce specific swap reporting and record-keeping rules on Railbird Exchange and QCEX, two companies with licenses to operate prediction markets in the US.
That’s important as rumors have surfaced that DraftKings is exploring acquisition opportunities, including Railbird. Rumors intensified during the Q2 2025 earnings call, when DraftKings CEO Jason Robins highlighted prediction markets as a potential future growth channel.
With FanDuel moving first alongside CME and Kalshi pressing sports boundaries despite legal headwinds, DraftKings faces a strategic choice: jump quickly to keep pace, or wait for a clearer regulatory footing.
