CME, FanDuel Taking Fight to Prediction Markets with Financial Contracts

• Gambling
• 20 August 2025

CME Group (NASDAQ: CME) and FanDuel said today that they are collaborating to offer yes/no event contracts based on financial markets and economic data to the sportsbook's customers, potentially upending the rapidly growing prediction markets sector.

Both the gaming company and the exchange operator anticipate launching those offerings later this year.  The derivatives will comprise yes/no bets on the daily performance of commodities, cryptocurrencies, economic data reports like GDP and inflation, and major equity indexes like the S&P 500 and Nasdaq-100.  The price of the derivatives will be as low as $1.  In the future, other contracts might be available.

The move comes as one of the biggest prediction markets, Kalshi, is expanding its reach into sports event contracts and may eventually eat into the industry that bookmakers like FanDuel have long controlled.  Kalshi stated in regulatory filings released on Monday that it will provide yes/no derivatives on football player props, sides, and totals unless the Commodities Futures Trading Commission (CFTC) prohibits it.

Speaking of Kalshi, recent reports indicated that the prediction market and the gaming company were negotiating a possible agreement, so the CME/FanDuel cooperation might be a setback for that company.

The CME and FanDuel Partnership May Attract Young Traders and Bettors

Financial exchanges with younger clientele are offering gamified trading, as seen by Robinhood Markets (NASDAQ: HOOD), which offers football futures. According to some industry watchers, these firms are obfuscating the distinction between investing and betting.  Flutter Entertainment (NYSE: FLUT) subsidiary FanDuel seems to be responsive to customer needs.

"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,” said CEO Amy Howe in a statement.

22 states, Puerto Rico, Washington, DC, and Missouri will soon be added to FanDuel's list of states where it allows online sports betting.  FanDuel has the largest or second-largest market share in almost all of those markets for online sports betting.  With over 12 million users, according to the business, the CME relationship may get off to a strong start.

The fact that many of those clientele are younger and actively trade and invest on sites like Robinhood may indicate that the partnership with CME will be successful.

In accordance with their agreement, CME and FanDuel will establish a new joint venture that will be governed by the CFTC, just like Kalshi and other prediction market operators, and will be set up as a non-clearing futures commission merchant (FCM).

Markets for Financial Prediction Have Been Successful

For prediction markets connected to financial assets, there are well-established, effective test cases.  Those were high-end products on Kalshi and Polymarket before branching out into sports.

Another trading company that is well-liked by aggressive traders is Interactive Brokers, which specializes in event contracts linked to finance.  Its ForecastEx platform, which enables wagers on economic data like consumer mood, inflation, and the monthly jobs statistics, was introduced in 2024.

Other gaming businesses may be waiting to take similar action in light of CME and FanDuel's partnership and prediction markets' increasing encroachment into the sports industry.  Others have been linked to unsubstantiated purchase rumors, while others have stated that they are keeping up with developments in the yes/no event contracts market.