FanDuel is making significant changes to its prediction market platform, FanDuel Predicts. The company plans to move sports and entertainment event contracts from CME Group to Crypto.com, expanding an existing partnership with the cryptocurrency company.
Flutter Entertainment CEO Peter Jackson announced the change on August 5 during the company’s analyst conference. He said that contracts covering sports and other events on FanDuel Predicts would be transferred to Crypto.com, while the partnership with CME Group would continue in other areas.
Preparing for the New NFL Season
One of the main reasons behind the move is the need to introduce new products more quickly ahead of the start of the NFL season. FanDuel believes that the new exchange structure will give it greater flexibility to expand its prediction market offering.
FanDuel Predicts operates as a prediction market where users can purchase contracts whose value depends on the outcome of a particular event. Sports have become one of the platform’s most important product categories.
In June, FanDuel and Crypto.com announced a partnership that would see Crypto.com’s OG Prediction Markets used for sports and entertainment event contracts, as well as so-called combo markets.
Financial Contracts to Remain With CME Group
FanDuel’s decision does not mean the company is completely ending its relationship with CME Group. Financial contracts, including products tied to major stock indexes, will continue to be offered through CME’s infrastructure.
FanDuel and CME Group announced their prediction market partnership approximately a year ago. Initially, the focus was largely on economic and financial market events, but FanDuel Predicts gradually placed greater emphasis on sports.
The rapid growth of sports-related contracts subsequently raised questions about how long the two companies would continue working together in this particular segment.
CME’s Position on Sports Prediction Contracts
The situation is also influenced by CME executives’ previous comments about sports prediction contracts. CME CEO Terry Duffy has described such products as similar to gambling and suggested that the legal status of prediction markets could eventually reach the U.S. Supreme Court.
Shortly afterward, CME announced a partnership with FutureSports. The platform develops indexes linked to the performance of athletes and teams, with CME planning to offer futures and options based on those indexes.
This could indicate that CME is preparing to compete more actively in the sports prediction market, even as FanDuel moves its own sports contracts to another platform.
FanDuel Sees Opportunities in Market Making
Despite the changes to its relationship with CME, FanDuel’s parent company Flutter Entertainment continues to see significant growth potential in prediction markets.
The company plans to use its expertise in sports trading and liquidity provision to act as a market maker on other prediction market platforms as well. This approach could allow FanDuel to generate revenue not only from its own platform but also from providing liquidity to prediction markets.
Flutter management expects revenue from its market-making business to reach approximately $50 million in 2026.
Overall, FanDuel’s decision to move its sports contracts to Crypto.com highlights broader changes taking place in the prediction market industry. Companies are increasingly looking to combine sports betting expertise, prediction markets, and financial technology, while the legal status of these products in the United States remains an unresolved issue.
