Flutter Entertainment has launched a prediction market app called FanDuel Predicts in partnership with CME group.
FanDuel launched its prediction markets app “FanDuel Predicts” in five states and in partnership with CME Group, days after rival DraftKings released a similar product in 38 states.
More companies are launching prediction market platforms following the substantial success of Kalshi and Polymarket.
Flutter Entertainment launches FanDuel Predicts
FanDuel, the U.S. online gambling division of Flutter Entertainment Plc, has entered the prediction markets space with the launch of FanDuel Predicts in five states. Cryptopolitan reported recently that its primary competitor, DraftKings Inc., rolled out its own prediction markets platform across 38 states.
Prediction markets operate under federal regulation by the Commodity Futures Trading Commission that allows betting-style activities in states that have not legalized online gambling.
FanDuel’s new app initially launched in Alabama, Alaska, South Carolina, North Dakota, and South Dakota, with plans for a phased national expansion throughout 2026. FanDuel Predicts will allow users to place wagers on the outcomes of sports events, cultural happenings, and financial indicators through a prediction markets exchange.
“This launch in five states will provide valuable insights into customer engagement with this new platform, enabling us to refine our approach as we expand to additional states in 2026,” James Cooper, the senior vice president at FanDuel, said.
The surge of interest in prediction markets is due to the rapid growth of startups like Kalshi Inc. and Polymarket, which have become new ways for users to wager on event outcomes. These platforms gained substantial market share in recent months, creating anxiety among established gambling companies about losing customers to less regulated competitors.
Between August and November, shares of both DraftKings and Flutter Entertainment declined as investors began to grow concerned about the competitive threat of prediction market startups.
However, Flutter’s stock price has risen since it announced the launch of FanDuel Predicts. The company’s shares climbed as much as 1.7% on Friday following the announcement.
What is FanDuel Predicts doing differently?
FanDuel is launching its prediction markets app in partnership with CME Group Inc., in order to provide the regulatory infrastructure needed to offer prediction market contracts legally.
DraftKings also announced it will route trades through CME Group, but the company has acquired its own derivatives exchange that it plans to use for trading in the future.
FanDuel plans to offer contracts on economic data, commodity prices, and stock indexes in all 50 states. However, sports-related contracts will only be available in states where online sports betting remains illegal.
Some state gambling authorities have warned that sports betting companies could lose their licenses if they offer prediction markets tied to sports in jurisdictions where they already hold sports betting licenses.
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Source: https://www.cryptopolitan.com/fanduel-prediction-market-bandwagon/
