FanDuel and CME Group Launch Prediction Markets in Five U.S. States

Expanding the Prediction Market Frontier

FanDuel, a leading sports betting company, and CME Group, a major derivatives exchange, have joined forces to launch a new prediction markets platform in five U.S. states: Alabama, Alaska, South Carolina, North Dakota, and South Dakota. The rollout is part of a phased plan to expand the platform nationally by early 2026, tapping into the growing interest in event-based contracts and predictive trading.

The platform, called “FanDuel Predicts,” allows users to trade contracts based on the outcomes of real-world events. This includes financial benchmarks such as the S&P 500 and Nasdaq-100, commodity prices like oil and gas, key economic indicators, and sports outcomes across baseball, basketball, football, and hockey. By combining financial and sports prediction markets, FanDuel and CME are positioning themselves as leaders in an asset class that has gained mainstream traction since the 2024 U.S. presidential election.

How FanDuel Predicts Works

Prediction markets are essentially platforms where users bet on the outcome of events. Prices in these markets reflect the probability of a specific result, and traders can buy or sell contracts depending on how they predict events will unfold. In states where online sports betting is restricted, the platform will still allow users to trade financial contracts, ensuring broad participation.

Lynne Fitzpatrick, CME Group’s CFO, emphasized that this partnership is a strategic step to bring CME’s products to millions of FanDuel users across the country. Analysts predict that the venture could generate over $300 million in revenue, comparable to the success of similar partnerships like Kalshi and Robinhood.

Competition Heats Up in the Market

FanDuel and CME are not alone. Last week, DraftKings also announced its own prediction markets platform, with CME as the exchange venue at launch. The surge in popularity of prediction markets has attracted both traditional financial heavyweights and newer entrants, reflecting growing retail investor interest in event-driven contracts.

Industry experts note that CME’s move could establish the exchange as the preferred venue for sportsbooks entering the prediction market space. By leveraging FanDuel’s massive user base and CME’s financial infrastructure, the partnership aims to dominate both the sports and financial sectors of predictive trading.

Why This Matters

Prediction markets offer several benefits. For traders, they provide opportunities to monetize knowledge and insights about sports, markets, and economic events. For companies like CME and FanDuel, they offer new revenue streams and increased engagement with users. Additionally, regulators are paying closer attention, given the potential for these platforms to intersect with online gambling laws, financial regulations, and investor protections.

The launch also underscores a broader trend of financial innovation merging with entertainment. By combining sports betting and financial trading mechanics, these platforms make complex markets accessible to casual users while still catering to sophisticated investors.

Looking Ahead

The success of FanDuel Predicts could reshape how Americans interact with prediction markets. As the platform expands nationally through 2026, analysts will be watching for user adoption rates, trading volume, and regulatory developments. With competition from DraftKings and other fintech firms, CME’s strategy may set a blueprint for future event-based financial markets in the U.S.

In summary, the FanDuel-CME collaboration represents a significant milestone for prediction markets, blending sports, finance, and technology. As Americans explore new ways to trade insights and forecast outcomes, this venture could redefine the way retail investors engage with real-world events.