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17h ago

FanDuel, CME Form Venture to Offer $1 CFTC-Regulated Event Contracts This Year

The move gives FanDuel’s retail users a federally regulated way to trade simple yes-or-no outcomes on financial benchmarks.

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

  • FanDuel and CME Group announced a joint venture that will operate as a non-clearing futures commission merchant to route CME-listed event contracts to FanDuel customers.
  • Initial offerings later in 2025 will cover benchmarks such as the S&P 500 and Nasdaq-100, oil and gas, gold, cryptocurrencies, and indicators like GDP and CPI.
  • Contracts will be federally overseen under CFTC frameworks and made available with low entry points, allowing repeated yes/no trades for as little as $1.
  • Sports-related markets are not part of the initial rollout, with the companies emphasizing a financial-market slate for launch.
  • The push comes as event contracts draw regulatory scrutiny, including Kalshi’s disputes with the CFTC and Robinhood pausing a Super Bowl product, while Flutter’s Betfair experience underpins FanDuel’s approach.