FanDuel to launch new prediction markets platform in December
The project is a joint venture between FanDuel’s parent company Flutter Entertainment and CME Group
US gambling giant FanDuel will launch a sports event contracts venture in December, according to parent company Flutter Entertainment.
FanDuel Predicts will be a standalone app including a range of sports event contracts in states where online sports betting is not legal, with users able to trade contracts on the outcome of sports including baseball, basketball, football and hockey (subject to appropriate regulatory filings).
If any of the states later legalize online sports betting, FanDuel’s platform will simply switch to offering standard sports wagering rather than contracts. In addition, sports contracts will not be available on tribal lands.
The project is a joint venture between Flutter and CME Group, one of the world’s leading derivatives marketplaces, and users will also be offered events contracts 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” according to a statement from the two companies.
“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,” added the press release.
FanDuel CEO Amy Howe said that the company “can’t wait to bring FanDuel’s proven approach to product innovation into this dynamic sector”, adding that “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.”
The news comes after DraftKings, the main sports betting rival to FanDuel, announced last week the launch of its own similar platform, DraftKings Predictions, with CEO Jason Robins saying that the platform will launch “in the coming months”.
Sports betting remains illegal in 11 states, with 38 states and Washington DC having introduced the medium in some form via either online sportsbooks or retail locations, and in some cases both.