Ins and Outs of the New Entrant in Prediction Markets


Published on: December 1, 2025, 02:13h.

Updated on: December 1, 2025, 02:43h.

  • FanDuel and CME are launching sports event contracts this month
  • FanDuel Predicts, a dedicated application, will be available in states lacking traditional sports betting options
  • Analysts foresee FanDuel quickly rising as a leader in the prediction markets sector

FanDuel Predicts, an innovative prediction markets platform from the leading online sportsbook in the U.S., is set to debut this month, marking the beginning of a competitive landscape in prediction markets.

prediction markets sports betting Massachusetts
FanDuel Predicts, launching in December 2025, is poised to become a frontrunner in the prediction markets space. (Image: FanDuel)

This is an excellent opportunity for bettors and traders to anticipate how FanDuel Predicts will shape up. Notably, this offering won’t be integrated into the primary FanDuel sports betting app but will exist as a distinct application.

The rationale behind this decision by FanDuel’s parent company, Flutter Entertainment (NYSE: FLUT), in collaboration with CME Group (NASDAQ: CME), is likely due to the fact that FanDuel Predicts will introduce sports event contracts in regions where traditional sports betting is not yet authorized. The app will be available only to users not located on tribal lands.

DraftKings Predictions, the anticipated event contracts platform from competing sportsbook DraftKings (NASDAQ: DKNG), is expected to follow a comparable model, highlighting that these two industry giants are seeking avenues to penetrate substantial markets such as California and Texas, where sports wagering is currently restricted.

The Significance of FanDuel Predicts

This year, investors have scrutinized both DraftKings and Flutter in light of reports indicating soaring volumes on platforms like Kalshi. However, FanDuel has the potential to emerge as a formidable contender within the sports event contracts niche.

Firstly, Flutter’s experience in prediction markets through BetFair in Europe significantly enhances FanDuel Predicts’ prospects. Secondly, given FanDuel’s status as one of the world’s most invaluable gaming brands, its involvement in sports event contracts could be a lucrative venture in the long run.

Furthermore, sports event contracts represent a substantial portion of turnover on traditional prediction markets, making it a fertile field for success for FanDuel, particularly since it’s already the leading sportsbook in the U.S. The company’s expertise in pricing and technology is likely to offer significant advantages in the prediction markets, especially when considering the prevailing conversations about yes/no contract providers who typically offer less favorable pricing compared to FanDuel.

CME and FanDuel unveiled their partnership in August, with a commitment to deliver yes/no event contracts based on economic indicators and financial markets to FanDuel’s clientele. The evolution of this offering will unfold over time, with expectations that FanDuel Predicts will initially focus on sports-related content.

FanDuel Predicts: Aiming for the Top Spot in PMs

Given its competitive branding, pricing strategies, and technological advancements, it’s plausible that FanDuel Predicts could ascend to become a leading player in the U.S. prediction markets, a sentiment echoed by various analysts.

According to a report from Macquarie analyst Chad Beynon late last November, the U.S. prediction market landscape is likely to evolve into a competitive environment featuring five main players: DraftKings, FanDuel, Kalshi, Polymarket, and Robinhood Markets.

Beynon estimates the total potential market for event contracts from DraftKings and FanDuel at around $5 billion, with sports derivatives making up approximately $4.4 billion of that figure.



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