FanDuel & CME Group Aim to Democratize Finance with New Prediction Market Platform

NEW YORK, NY – November 12, 2025

A Bold Bet on Prediction Markets

FanDuel and CME Group are joining forces to launch ‘FanDuel Predicts,’ a new mobile platform designed to allow users to trade contracts on the outcomes of sporting events, economic indicators, and even benchmark indices like the S&P 500. The venture, slated to launch in December, aims to lower the barriers to entry into financial markets by gamifying predictions and tapping into FanDuel's substantial user base. While the companies tout the platform's potential to democratize finance, the move raises questions about the blurring lines between investment and gambling, and the regulatory hurdles that lie ahead.

Expanding Access, Raising Questions

The core concept behind ‘FanDuel Predicts’ is to make trading accessible to a broader audience, moving beyond traditional complex trading platforms. Contracts will be priced affordably, ranging from $0.01 to $0.99, and the mobile-first design aims for a user-friendly experience. “This isn't about day trading for seasoned professionals,” explains one industry analyst. “It’s about allowing anyone to participate in making predictions and potentially profiting from their insights.” The platform's initial offerings will cover a diverse range of assets, from oil and gas prices to cryptocurrency and GDP growth.

However, the very nature of prediction markets—where users essentially bet on future events—raises concerns about encouraging potentially addictive behavior. While FanDuel is emphasizing its responsible gaming measures, including KYC processes and deposit limits, critics argue that the gamified format could attract a different type of user—one more motivated by entertainment than sound financial analysis. “There’s a risk that this could be perceived as gambling in disguise,” notes a legal expert specializing in financial regulations. “The companies will need to be extremely diligent in ensuring that users understand the risks involved and that the platform is not marketed as a get-rich-quick scheme.”

Navigating a Complex Regulatory Landscape

The regulatory environment for prediction markets in the United States is notoriously complex. The Commodity Futures Trading Commission (CFTC) has jurisdiction over contracts that meet the definition of “swaps” or “futures,” but the agency has historically been wary of platforms that resemble gambling. Recent years have seen increased scrutiny, with the shutdown of PredictIt and regulatory actions against Polymarket highlighting the need for strict compliance.

Kalshi, another prediction market platform, has managed to secure CFTC approval by focusing on factual events with clear economic utility—such as election outcomes and macroeconomic indicators. It’s likely that FanDuel and CME Group will need to adopt a similar approach to navigate the regulatory landscape successfully. The platform's planned phase-out of sports contracts in states with legalized sports betting suggests an awareness of potential conflicts with state-level gambling laws.

“The key will be demonstrating that ‘FanDuel Predicts’ is not simply a disguised form of gambling,” one source familiar with the CFTC’s thinking explains. “The platform needs to have a legitimate purpose beyond entertainment—such as providing price discovery or hedging opportunities—and it needs to be transparent about the risks involved.” The companies will also need to ensure they are complying with KYC and AML regulations, which are essential for preventing illicit activity.

Beyond Entertainment: Potential for Broader Applications

While the launch is being initially framed as a novel entertainment offering, the potential of prediction markets extends far beyond sports and entertainment. The collective intelligence inherent in these markets can be harnessed to improve forecasting in a variety of fields. “Prediction markets can be remarkably accurate at forecasting future events,” says a data scientist specializing in forecasting. “By incentivizing users to make accurate predictions, you can tap into a vast pool of knowledge and expertise.”

The platform’s potential applications extend to areas such as supply chain management, political analysis, and public health. For example, a prediction market could be used to forecast demand for a particular product, identify potential disruptions in the supply chain, or assess the effectiveness of a new public health intervention. This could provide businesses and governments with valuable insights that can help them make more informed decisions. The key will be to expand beyond the initial focus on entertainment and explore these broader applications.