FanDuel and CME Group Unveil New Prediction Markets Platform to Launch in December
FanDuel, the premier online gaming company in North America, part of Flutter Entertainment, and CME Group, the world’s leading derivatives marketplace, unveiled that they will launch prediction markets through the new FanDuel Predicts app that will expand access to financial markets for millions of customers in the US.
FanDuel Predicts will launch in December as a standalone mobile application. Subject to appropriate regulatory filings, the app will provide access to sports event contracts across baseball, basketball, football, and hockey. In states where online sports betting is not yet legal, customers who are not on tribal lands will be able to trade event contracts on the outcome of sporting events. As new states legalize online sports betting, FanDuel will cease offering sports event contracts in those states. In addition to sports, event contracts will be offered on benchmarks such as the S&P 500 and Nasdaq-100, prices of oil and gas, gold, cryptocurrencies, and key economic indicators such as GDP and CPI.
FanDuel will extend its industry-leading consumer protection program to the FanDuel Predicts app. The platform will empower customers to trade responsibly with tools to help manage exposure, track spending and make informed trading decisions. Within the app, customers will find educational resources to learn about prediction markets and how to buy and sell event contracts. Customers may set deposit limits and deposit alerts that apply to all FanDuel products and may self-exclude, just as they can on all FanDuel products today.
“We can’t wait to bring FanDuel’s proven approach to product innovation into this dynamic sector. 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,” said Amy Howe, CEO at FanDuel.
“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. This launch will dramatically expand our distribution and reach, connecting directly with FanDuel’s millions of registered U.S. users,” said CME Group Chairman & Chief Executive Officer Terry Duffy.
When customers sign up for FanDuel Predicts, they will undergo FanDuel’s thorough “Know Your Customer” sign up process providing information including their birth date, Social Security number, home address, banking information and a valid ID. Once the account is created, they will then be able to buy or sell event contracts ranging in price from as little as $0.01 to $0.99.
