Lynnae is a journalist covering the intersection of technology, culture, and gambling. She has more than five years of experience as a writer and editor, with bylines at SlashGear and MakeUseOf. On the iGaming side,...
Read Full BioAs the prediction market race heats up, FanDuel has thrown its hat in the ring, announcing in a press release on Wednesday that it will launch a new app with CME Group, a decision that comes as it gives up on Nevada, choosing event contracts over fighting for a place in Nevada’s traditional sports betting system. The move comes less than a week after DraftKings announced it would launch its own prediction markets platform by the end of 2025.
The company’s new app, FanDuel Predicts, is set to arrive in December and will allow users to trade event contracts tied to “global benchmarks and economic indicators,” including stock indices, commodities, cryptocurrencies, and key economic data. Sports event contracts will be available in states where sports betting is still illegal.
FanDuel said the Predicts app will list contracts for as little as $0.01 to $0.99 on benchmarks including the S&P 500 and Nasdaq-100, as well as on oil, gas, gold, cryptocurrencies, and macroeconomic indicators such as GDP and CPI.
On the sports side of things, and subject to regulatory approvals, the app will offer event contracts across baseball, basketball, football, and hockey, but only in non-online sports betting states and not on tribal lands.
FanDuel says it plans to pull sports contracts from states that legalize sports betting after the Predicts app goes live.
FanDuel & CME Make Their Pitch
FanDuel CEO Amy Howe framed the new app as a natural extension of the company’s product lineup. “We can’t wait to bring FanDuel’s proven approach to product innovation into this dynamic sector,” Howe said. “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.”
CME Group Chairman and CEO Terry Duffy said the launch creates a bridge between casual users and the professional trading world. “Our new event contracts on benchmarks, economic indicators, and now sports will appeal to a new generation of potential participants who are not active in these markets today,” Duffy said. “This launch will dramatically expand our distribution and reach, connecting directly with FanDuel’s millions of registered U.S. users.”
When users sign up for the new app, they’ll go through the same process they do for the company’s other products, including completing FanDuel’s “Know Your Customer” registration, where they’ll have to provide information, including date of birth, Social Security number, home address, banking information, and a valid ID. Once they’ve done that, they’ll be able to buy and sell event contracts on the platform.
FanDuel, DraftKings Withdraw From Nevada
FanDuel’s announcement of its new Predicts app came on the same day that Nevada regulators confirmed Flutter Entertainment/FanDuel and DraftKings have voluntarily exited the state’s licensing process.
In a November 12 statement, the Nevada Gaming Control Board said it had “accepted the surrender of Flutter Entertainment PLC’s Order of Registration, as well as all related licenses and approvals, including those for FanDuel Sportsbook and its license as a provider of an information service, and had granted administrative approval for withdrawal of all active and pending applications.”
Chairman Mike Dreitzer wrote that it had been “made clear to the Board that Flutter Entertainment/FanDuel and DraftKings intend to engage in unlawful activities related to sports event contracts.” He added that this conduct is “incompatible with their ability to participate in Nevada’s gaming industry.”
The board reiterated its position that offering sports contracts is “wagering activity,” under Nevada law, even if those contracts are listed on a CFTC-regulated exchange or another platform.
Nevada’s rules only allow operators with “nonrestricted gaming license and sports pool approval” to offer wagers on sports or similar events. The state also expects companies to comply with its other sportsbook requirements, which include having approved wagering accounts and sportsbook systems.
Following the rules in Nevada isn’t enough; if a licensee in the state offers sports event contracts in another jurisdiction that doesn’t meet the state’s licensing or regulatory requirements, works with a partner that does so, or violates a tribal compact, the operator could face action under the Gaming Control Act.
The action follows an October 15 notice, “Sports Event Contracts are Wagers,” in which the Board cautioned that engaging in or facilitating unlawful sports wagering in another jurisdiction could reflect poorly on a licensee’s “good character and integrity.”
As FanDuel and DraftKings give up on Nevada’s licensing process and move toward prediction-market products elsewhere, the fight over sports-event contracts has become a defining fault line in U.S. gambling.
