Published on: August 20, 2025, 05:40h.
Updated on: August 20, 2025, 05:40h.
- Collaborations are emerging over yes/no contracts concerning commodities, stock indices, economic metrics, and more
- CME and FanDuel are launching a strategic partnership
- This collaboration could impact Kalshi negatively
In a potentially transformative move for the emerging prediction markets arena, CME Group (NASDAQ: CME) and FanDuel have announced their collaboration to deliver yes/no event contracts focused on economic metrics and financial markets to FanDuel’s clientele.
The exchange operator and the gaming entity anticipate launching these products later this year. The derivatives will encompass yes/no contracts on the daily movements of primary equity indices like the Nasdaq-100 and S&P 500, commodities, cryptocurrencies, and significant economic reports, including GDP and inflation. These contracts could start at just $1, with additional offerings possible in the future.
This news coincides with Kalshi, one of the leading prediction markets, advancing deeper into sports event contracts, potentially encroaching on clientele traditionally served by sportsbooks such as FanDuel. In regulatory disclosures made public on Monday, Kalshi indicated that it would offer yes/no derivatives on football player props, game sides, and totals unless restricted by the Commodity Futures Trading Commission (CFTC).
Regarding Kalshi, the CME/FanDuel alliance may pose a challenge for the firm, especially since recent speculations hinted at discussions regarding a possible partnership between FanDuel and the prediction market.
Potential Appeal of CME and FanDuel Partnership for Younger Gamblers and Traders
As noted by Robinhood Markets (NASDAQ: HOOD) introducing football derivatives, financial exchanges catering to younger demographics are embracing gamified trading, with some industry experts asserting that companies are increasingly blurring the lines between betting and investing. FanDuel, a division of Flutter Entertainment (NYSE: FLUT), seems attuned to customer preferences.
“We recognize a potentially vast audience for trading event-based markets, and we aim to provide a platform that facilitates customer engagement in this area,” stated CEO Amy Howe.
FanDuel operates online sports wagering across 22 states along with Puerto Rico and Washington, DC, with Missouri expected to join shortly. In nearly all its markets, FanDuel ranks among the top two for internet sports betting market share. The company claims a user base exceeding 12 million, suggesting a solid foundation for the CME partnership.
Many of these users are younger and actively trading on platforms like Robinhood, which could indicate a successful venture for the CME alliance.
As part of their collaboration, CME and FanDuel will form a new joint venture designed as a non-clearing futures commission merchant (FCM), subject to regulation by the CFTC, similar to Kalshi and other prediction market platforms.
Successful Financial Prediction Markets Established
There are proven, successful examples of prediction markets associated with financial assets. Before branching into sports, these were prominent offerings on platforms like Kalshi and Polymarket.
Interactive Brokers, another brokerage firm well-regarded among active traders, has experience with finance-related event contracts. In 2024, it unveiled its ForecastEx platform, enabling betting on economic data such as consumer sentiment, inflation, and monthly employment reports.
With CME and FanDuel collaborating and prediction markets expanding into the sports sector, other gaming companies may need to expedite similar initiatives. Reports suggest they are monitoring developments in the yes/no event contracts market and some have been linked to speculation of unconfirmed acquisitions.