Gambling powerhouse Flutter Entertainment is preparing to foray into the hot prediction markets space via a partnership between its FanDuel brand and CME Group. The arrangement will result in the launch of the FanDuel Predicts app, allowing Flutter to tap into the growing demand for event contracts.

FanDuel Predicts to Hit the Market in December

According to Flutter’s official announcement, its premier betting brand, FanDuel, has teamed up with CMA Group, the world’s leading derivatives marketplace. The partnership will result in the launch of the new FanDuel Predicts app, which will allow millions of fans across America access to cutting-edge event contract offerings.

Flutter elaborated that FanDuel Predicts will launch in December as a standalone mobile application. While its launch is still subject to certain regulatory approvals, Flutter teased that the app will offer sports event contracts across football, basketball, baseball, and hockey.

Since prediction markets are not classified as sports betting, the new platform will allow customers in states where betting is not yet legal to play. FanDuel added that it will cease offering sports events contracts in such states if and when they legalize sports betting.

In addition to sports, FanDuel Predicts will also offer event contracts on a variety of benchmarks, including the S&P 500, Nasdaq-100, oil prices, crypto, gold and other economic indicators.

Flutter promised that FanDuel Predicts will boast the same robust consumer protections that long-time FanDuel users would already be familiar with. The app will contain crucial resources on the nature of prediction markets, how to use the platform, and how to protect oneself from overspending.  

Newly registered consumers will undergo a know your customer (KYC) sign-up process, asking them to provide certain information about themselves. Once the process has been completed, players will be able to access the contracts, which range in price from $0.01 to $0.99.

A Groundbreaking Alliance

The tie-up with CME Group was described as a “groundbreaking alliance” that pairs FanDuel’s customer experience and mobile technology with CME Group’s 100+ year expertise in derivatives and risk management.

FanDuel’s chief executive officer, Amy Howe, commented on the market, saying that she can’t wait to apply her team’s expertise to this new sector. She was pleased that FanDuel’s launch would be supported by a derivatives expert, such as CME Group.

Our partnership with CME Group allows us to leverage their deep market expertise built over decades while delivering the seamless, accessible experience our customers expect.

CME Group’s CEO & chair, Terry Duffy, was similarly pleased about the deal. He believes that the new contracts on economic indicators are certain to appeal to a new generation of players.

Duffy added: “This launch will dramatically expand our distribution and reach, connecting directly with FanDuel’s millions of registered U.S. users.”

FanDuel’s new app, however, was met with hostilities by tribal gaming authorities, which were unhappy about the launch.