FanDuel and Chicago Mercantile Exchange (CME) Group have introduced a new prediction markets platform in five U.S. states, marking a significant step in the expansion of event-based trading. The platform, named “FanDuel Predicts,” is now live in Alabama, Alaska, South Carolina, North Dakota, and South Dakota, with additional states expected to be added through early 2026.
The launch follows a partnership between FanDuel and CME Group announced earlier this year, aiming to create a platform where users can trade contracts on a range of events, from financial benchmarks to sports outcomes. Customers will be able to engage with indices like the S&P 500 and Nasdaq-100, commodity prices, and key economic indicators. In states where sports betting is not legal, the platform will offer sports contracts across baseball, basketball, football, and hockey.
A Platform for Both Finance and Sports
Prediction markets allow users to wager on the outcome of real-world events, a concept that has gained mainstream attention since the 2024 U.S. presidential election. Analysts suggest that CME Group is positioning itself as a leading exchange for sportsbooks entering this growing market, tapping into the retail demand for prediction-based trading.
“This launch is a pivotal step for expanding the reach of our products to FanDuel’s millions of registered users across the U.S.,” said Lynne Fitzpatrick, CME’s chief financial officer. Piper Sandler analysts estimate that CME could generate more than $300 million in revenue from this joint venture if it reaches the scale of competitors like Kalshi and Robinhood’s partnership.
FanDuel’s Senior Vice President, Flywheel and New Ventures James Cooper, added, “We’re giving our customers a new platform to engage with the world around them – whether that’s the next Fed rate decision or a sports event. This launch in five states will provide valuable insights into customer engagement with this new platform, enabling us to refine our approach as we expand to additional states in 2026.”
Gradual Rollout and Responsible Gaming
FanDuel Predicts will gradually expand to other states, eventually reaching a national footprint. The platform employs responsible gaming tools similar to those used by FanDuel Sportsbook, including self-exclusion options, deposit limits, and access to mental health resources through Kindbridge Behavioral Health. Users must be 18 or older to participate.
State-specific offerings will vary. Sports-related event contracts are geolocated to exclude tribal lands and will be withdrawn if a state legalizes sports betting. Compared with competitors, FanDuel Predicts is rolling out more slowly; DraftKings’ platform is available in 38 states, while Fanatics Markets expanded from 10 to 24 states within days.
Competition Intensifies in the Prediction Market Space
The U.S. prediction market sector is growing rapidly, with five major operators—FanDuel, DraftKings, Fanatics, Underdog, and PrizePicks—competing alongside Kalshi, Crypto.com, and Polymarket. Coinbase recently began hosting Kalshi contracts, and Kalshi acquired The Clearing Company to bolster its market offerings. Legal challenges remain, with lawsuits emerging over overlaps between sports contracts and regulated state sports betting in nearly a dozen states.
Source:
“FanDuel, CME Group launch prediction markets in five US states”, reuters.com, December 22, 2025
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