Date of posting: November 12, 2025, 05:03h.
Updated on: November 12, 2025, 05:03h.
- A joint venture was revealed by the companies in August.
- The FanDuel Predicts application is set to launch in December.
- This app will provide sports event contracts in states where sports betting is not allowed.
CME Group (NASDAQ: CME) and FanDuel announced today that their collaborative prediction markets initiative is progressing and will debut next month under the name FanDuel Predicts.
FanDuel Predicts will operate as an independent mobile application, separate from the usual FanDuel sports betting interface. The significant highlight of this announcement is that the new app will provide sports event contracts in areas where sports betting is currently prohibited. However, this service will be limited to clients located outside of tribal areas.
“As more states legalize online sports betting, FanDuel will discontinue offering sports event contracts in those regions,” stated a release from the companies.
This suggests that with online sports betting set to launch in Missouri next month, FanDuel Predicts will no longer offer sports derivatives in that state.
FanDuel Predicts: A Strategic Move into Major Markets
With Missouri coming on board next month, online and retail sports betting will now be available in 40 states and Washington, D.C. However, notable absences include large markets like California and Texas. Furthermore, Florida’s market is monopolized by the Seminole Tribe.
FanDuel and its competitors have been excluded from these markets, yet prediction markets are governed federally, allowing firms such as Kalshi access to state markets that sportsbook operators are eager to penetrate. This federal oversight likely contributed to FanDuel’s partnership with CME announced in August.
While FanDuel Predicts could effectively enable the company to break into the “big three” states and Georgia, it may also face legal hurdles, particularly in California and Florida, where tribal nations influence gaming expansion. That said, Kalshi recently achieved a legal victory in California when a judge ruled against three tribes that challenged the prediction markets giant over its assertion that sports betting is lawful across all 50 states under the Lanham Act.
Although tribal gaming operators have less prominence in Texas, the state has a history of anti-gaming policies that may pose challenges for prediction markets. However, Texas has thus far avoided legal conflicts with event contract companies.
FanDuel Predicts Goes Beyond Sports
Central to the partnership between CME and FanDuel is the exchange operator’s strength in financial derivatives, positioning FanDuel Predicts to offer a broad spectrum of event contracts beyond just sports — a detail emphasized during the August announcement and reiterated today.
“In addition to sports, event contracts will be available on major benchmarks such as the S&P 500 and Nasdaq-100, along with commodities like oil, gas, gold, cryptocurrencies, and important economic metrics like GDP and the Consumer Price Index (CPI),” according to their public statement.
At present, most activity on leading prediction markets is driven by sports and political events, but many younger bettors and users of prediction markets are also investors, indicating that crypto- and index-related derivatives could find a growing audience.