Published on: October 17, 2025, 03:06h.
Updated on: October 17, 2025, 03:06h.
- Reports indicate that CME Group may launch sports event contracts by the close of 2025.
- Details on FanDuel’s involvement remain unclear.
CME Group (NASDAQ: CME), the entity behind the Chicago Mercantile Exchange (CME), is said to be planning the release of sports event contracts before year’s end, intensifying its competition with prediction market players like Kalshi and Polymarket.
According to unnamed sources cited by Bloomberg, CME could provide sports contracts through futures commission merchants (FCMs) and related platforms, possibly allowing retail brokers to offer these derivatives to their clientele. However, the circumstances are subject to change, as noted by the sources.
This news came shortly after Intercontinental Exchange (NYSE: ICE), which owns the New York Stock Exchange (NYSE), acquired a $2 billion stake in Polymarket—one of the leading prediction market operators. This investment values Polymarket at between $9 billion and $10 billion post-money.
The emergence of this report coincided with increased activity in prediction markets during the football season, elevating volumes across Kalshi, Polymarket, and similar platforms. While traditional sportsbook stocks have suffered, analysts suggest that this concern may be exaggerated, as conventional sportsbooks still capture a significantly larger market share than prediction markets.
Could FanDuel Be Part of CME’s Sports Strategy?
In August, CME and FanDuel, a subsidiary of Flutter Entertainment (NYSE: FLUT), revealed a partnership intended to introduce event contracts linked to economic data releases and financial asset prices to FanDuel’s users.
The FCM model CME is reportedly exploring for sports contracts bears resemblance to its deal with FanDuel, fueling speculation about the online sportsbook’s potential involvement, though it’s still uncertain if this will occur.
In August, the two companies announced plans to introduce yes/no contracts regarding the performance of major equity indexes, including the Nasdaq-100 and S&P 500, as well as commodities, cryptocurrencies, and critical economic data reports like GDP and inflation. Costs for these derivatives are projected to start at just $1, with additional contracts possibly being available in the future.
“While we collaborate with CME Group to carve out our offerings, we are also actively engaging with various stakeholders, including state regulators, and no final decisions have been made as we persist in our dialogues in a dynamically evolving legal and regulatory landscape,” conveyed a representative from FanDuel to Bloomberg.
FanDuel Must Proceed with Caution
The precise nature of FanDuel’s potential involvement with CME’s upcoming sports contracts remains uncertain. However, it’s evident that the gaming company must approach this venture cautiously or possibly avoid engaging in sports event contracts entirely.
Numerous states have cautioned sportsbook operators that entering the arena of sports event contracts may jeopardize their licenses in those regions. Given the current minimal volume in prediction markets compared to sportsbook revenue, the risk of forfeiting traditional gaming licenses might deter operators from sincerely exploring prediction market opportunities.