- CME Group & FanDuel are launching FanDuel Predicts, a U.S. prediction markets app, this December.
- New market access enables users to trade event-based contracts even in states restricting online sports gambling.
- Strategic partnership leverages FanDuel’s millions of users and CME’s derivatives expertise to expand prediction market reach.
CME Group and FanDuel announced a new partnership focused on creating a platform for prediction markets, which is set to roll out in the United States this December under a standalone app known as FanDuel Predicts.
According to a press release, the program would give people the chance to enter into agreements to purchase and sell contracts for sports event results in states where online sports gambling is illegal. And this is only the tip of the iceberg, as contracts for sports, oil, natural gas, common stock, and cryptocurrencies would also be available.
“Our event contracts based on benchmarks, economic markers, and sports will interest a new group of players who do not actively participate in those markets at this time,” stated Terry Duffy, CME Group’s CEO and Chairman. “This launch will greatly allow CME to connect with FanDuel’s millions of registered members in the United States.”
This is a significant step at the finance-technology-entertainment nexus, as prediction markets continue to grow in popularity in the United States of America. These prediction markets create an avenue for individuals to place bets regarding the probability of future occurrences, as they also give insights into the process.
Presently, the state of prediction markets in the U.S. is dominated by Kalshi and Polymarket. Kalshi has used its regulatory oversees to lead in market transactions, although Polymarket is said to be planning to relaunch in the U.S. to compete with market leader Kalshi.
Both of them have also focused on increasing their reach via partnerships, as Robinhood partnered with Kalshi for sports as well as political event contracts, although Polymarket partnered only with Yahoo Finance. Furthermore, both have also collaborated with the National Hockey League and Google.
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CME Group, Gemini Enter Booming Prediction Market
Adding to this competitive fray, Gemini, a crypto exchange established by the famous Winklevoss twins, is also entering this market. Gemini has even filed for regulation to run a designated contract market, which would allow it to launch prediction contracts as soon as possible, as per a report by Bloomberg.
The entry of CME Group and FanDuel into this market is set to catapult prediction markets in the U.S. to unprecedented levels of growth. Through this union of a reputable derivatives exchange and a huge fantasy sports site, FanDuel Predicts is set to provide millions of Americans access to novel ways of participating in financial as well as sports-related markets.
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