- CME Group plans to launch a prediction market platform offering contracts on economic indicators and potentially sports events by the end of 2025.
FanDuel is partnering with CME but has yet to confirm involvement in sports event contracts amid regulatory concerns from states with legal sports betting. - The rise of competitors like Kalshi has intensified market disruption and regulatory scrutiny, prompting questions about licensing and oversight.
NEW YORK — CME Group may launch contracts based on sports events before the end of 2025, a development that could reshape both prediction markets and the broader gaming industry.
The exchange operator’s growing partnership with FanDuel is central to these plans, as the two companies prepare to roll out a new platform aimed at retail traders.
The joint venture, announced in August, will allow users to trade on event outcomes through simple yes/no contracts. While the initial offering will focus on financial benchmarks and economic indicators, CME is reportedly preparing to introduce sports-related contracts as the platform evolves.
What the CME-backed prediction platform is expected to offer:
- Contracts on economic indicators like GDP, inflation rates, and unemployment figures
- Financial market outcomes, including daily performance of indexes such as the S&P 500 and Nasdaq-100
- Potential sports event contracts, such as game outcomes or point totals, pending regulatory review
Though FanDuel has not confirmed whether it will directly offer sports contracts, its involvement in the venture has raised questions from regulators. Several states with legal sports betting, including Ohio, Michigan, and Arizona, have warned operators that even indirect ties to unlicensed sports contracts could jeopardize gaming licenses.
The rise of competing platforms like Kalshi has added urgency to the situation. Kalshi recently set a single-day trading record with over $275 million in activity, largely driven by football markets. The surge triggered a steep market response, with DraftKings and Flutter Entertainment losing nearly $7 billion in combined market cap.
Read more: Kalshi Triggers $7 Billion Loss for Sports Betting Leaders
On Capitol Hill, lawmakers are beginning to question the Commodity Futures Trading Commission’s role in approving sports-related contracts. With prediction markets evolving quickly as legal sports betting, CME’s next steps and how closely FanDuel stays involved could have significant implications across finance and gaming.
