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FanDuel and CME Form Joint Venture to Launch $1 Event Contracts on Markets This Year

The joint venture will use CME-listed, CFTC-regulated yes/no contracts to reach FanDuel’s large retail audience.

Fanduel app is seen in this illustration taken June 17, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • The products will let users take simple yes or no positions for as little as $1 on benchmarks including the S&P 500, Nasdaq-100, oil and gas, gold, cryptocurrencies, GDP and CPI, with launches expected later this year.
  • CME and FanDuel will operate as a non-clearing futures commission merchant, with contracts listed on CME exchanges and financial terms not disclosed.
  • FanDuel’s offering will focus on non-sports financial event contracts at launch, with those contracts overseen by the CFTC while FanDuel’s sportsbook remains regulated state by state.
  • The move comes as prediction markets gain traction, with recent expansions by Robinhood and ongoing legal friction involving platforms like Kalshi and state gaming regulators.
  • Flutter’s experience running Betfair was cited as relevant background, and industry analysts suggest the structure could allow sports contracts in the future, though none are planned now.