FanDuel Teams Up With CME for Bets on Stocks and Commodities

(Bloomberg) — FanDuel, the online gambling division of Flutter Entertainment Plc (FLUT), is teaming up with CME Group Inc. (CME), the largest US derivatives exchange, to offer bets on stocks, commodity prices and even inflation.

Most Read from Bloomberg

Why New York City Has a Fleet of New EVs From a Dead Carmaker Trump Takes Second Swing at Cutting Housing Assistance for Immigrants Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone Neom’s Desert Ski Resort Strains Saudi Prince’s $1.5 Trillion Plan

Expected to launch later this year, the event-based contracts will be tied to benchmarks such as the S&P 500 (^GSPC) and Nasdaq-100 (^NDX), the prices of oil and gas, gold, cryptocurrencies, and key economic indicators such as GDP and CPI, the companies said Wednesday.

The bets will be framed in a way that makes them regulated financial products rather than wagers in a state-supervised casino, according to the parties. Customers will be able to express their views multiple times a day on a wide range of markets with simple “yes” or “no” positions for as little as $1.

“Interest in prediction markets is growing, driven by unregulated platforms’ volume and signs of a more relaxed regulatory environment,” said Caroline Mauron, co-founder of Orbit Markets. FanDuel and CME’s focus on financial assets and economic indicators “seems like a way to position early, should rules evolve to allow broader prediction market offerings,” she added.

Chicago-based CME has made a concerted push to reach more retail traders, with a recent rollout of futures products on Robinhood Markets Inc. (HOOD) and the launch of new “micro” contracts for farm commodities that trade in finer increments and are cash-settled instead of physically delivered.

The prediction marketplace is already a crowded industry, with crypto-betting platform Polymarket making moves to re-enter the US. Crypto.com, one of the largest US digital asset exchanges, and Kalshi Inc., both of which are registered with the CFTC like CME, began offering their own sports contracts in recent months, driving further competition. The Biden administration tried to quash both sports and politics-themed betting on derivatives exchanges, but the Trump White House has been far more welcoming towards products that once raised eyebrows in Washington.

NasdaqGS - Delayed Quote•USD

(CME)

Follow View Quote Details

274.61

+3.12

+(1.15%)

At close: August 20 at 4:00:00 PM EDT Advanced Chart

CME is using its so-called futures commission merchant, or FCM, in the partnership. It got approval to operate its own FCM last year, which is responsible for accepting orders to buy or sell futures contracts, options on futures and money to complete customer orders.

Story Continues

The products are subject to regulatory review by the US Commodity Futures Trading Commission. The contracts will be accessible through FanDuel’s app, but listed on and subject to the rules of CME Group exchanges.

(Updates with comment in fourth paragraph)

Most Read from Bloomberg Businessweek

Foreigners Are Buying US Homes Again While Americans Get Sidelined What Declining Cardboard Box Sales Tell Us About the US Economy J.Crew Survived Bankruptcy. Next Up: Cultural Relevance? Women’s Earnings Never Really Recover After They Have Children Americans Are Getting Priced Out of Homeownership at Record Rates

©2025 Bloomberg L.P. Sign up for the Yahoo Finance Morning Brief

Subscribe

By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy

View Comments