FanDuel to launch prediction app in December

[The Buzz]

According to an article published by InGame.com today, FanDuel will launch a new app called FanDuel Predicts in December, offering sports event contracts in partnership with commodities giant CME Group.

The platform will let users trade on outcomes in major U.S. sports such as football, basketball, baseball, and hockey, as well as on non-sports benchmarks including stock indexes, oil and gas prices, gold, and cryptocurrencies.

The app will operate only in states where online sports betting isn’t yet legal, a strategy that mirrors DraftKings’ upcoming DraftKings Predictions platform. By limiting access to these states, FanDuel aims to avoid conflicts with regulators who view prediction markets as a form of unlicensed gambling, and to sidestep issues with tribal lands that oppose such contracts.

From InGame.com:

The announcement now appears to put in motion a race to go live between FanDuel Predicts — with a December launch date — and DraftKings Predictions, which will be live “in the coming months,”

In terms of regulatory steps, FanDuel’s path appears to be a smoother one. CME is already registered with the National Futures Association (NFA) and CFTC as a Futures Commission Merchant (FCM), and InGame understands that the FanDuel Predicts app will operate based on this registration. CME must self-certify the contracts it wishes to offer, but — once the government shutdown ends — self-certified contracts can be offered as soon as the same day that the filing is submitted.

Read more here: https://www.ingame.com/fanduel-offer...ent-contracts/

[Ymercury]

FanDuel entering the prediction market space feels like the next logical step, especially with CME Group behind them, that’s a serious regulatory backbone compared to some of the newer platforms. Targeting non–sports betting states is also a clever workaround that mirrors DraftKings’ approach, and it avoids the tribal compact issues that have slowed down others.

With both FanDuel and DraftKings racing to launch, prediction markets might become the next big competitive battleground in the U.S. gaming space. The December launch window will be interesting to watch.