A new player is entering the prediction market. FanDuel, known for sports betting, is going one step further and launching the FanDuel Predicts platform in collaboration with CME Group. The service is live in five American states and is set to become the legal alternative to crypto platforms such as Polymarket.
The move marks a striking shift. Whereas Polymarket is best known for its unregulated blockchain markets, FanDuel has opted to collaborate with the world’s largest derivatives exchange — and thus for legitimacy.
FanDuel opts for collaboration with financial giant
The launch of FanDuel Predicts in Alabama, Alaska, North Dakota, South Carolina and South Dakota is the start of a phased rollout that will continue until early 2026. With CME Group, the market leader in global derivatives trading, FanDuel gains financial credibility.
The platform offers users the opportunity to take positions on a variety of events: from economic figures and stock market prices to cultural and sporting events. The market mechanism is simple: a contract costs between 1 and 99 pence and pays out one pound if the prediction comes true.
James Cooper, Senior Vice President at FanDuel, calls it ‘a way to be engaged with the world around you – whether that’s the Federal Reserve’s interest rate decision or the outcome of the Super Bowl.’ His words underscore the ambition: FanDuel Predicts should not just be another betting site, but an interactive economic platform.
A regulated alternative to crypto markets
The timing is striking. Crypto platforms such as Polymarket are attracting increasing attention, but are under pressure from regulators in the US. Polymarket was previously only allowed to continue after reaching a settlement with the Commodity Futures Trading Commission (CFTC) and is still a grey area for many.
FanDuel wants to fill that void with a legal and controlled alternative. By partnering with CME Group, the company hopes to reassure both investors and regulators. The structure of the markets – based on regulated derivatives principles – should set it apart from the often anonymous blockchain variants.
This approach shows that the prediction market is maturing. Where Polymarket embraces the underground culture of crypto, FanDuel focuses on transparency, oversight and consumer protection.
From sports to economics: prediction as a new form of engagement
The first version of FanDuel Predicts offers markets around the S&P 500, the Nasdaq, oil prices, gold, cryptocurrencies and macroeconomic figures such as US GDP and inflation. In addition, there are sports-related contracts – but only in states where online betting is not yet permitted.
The latter is crucial. FanDuel wants to keep the line between betting and market prediction clear. As soon as a state legalises sports betting, the sports contracts will disappear from Predicts.
CME Group President Lynne Fitzpatrick calls it a ‘new way to trade expectations.’ She emphasises that this platform introduces a younger generation to financial markets without them having to trade real derivatives directly.
Safety and oversight as an asset
FanDuel uses its existing verification system, including identity checks and bank verification, to prevent fraud. Users must be at least 18 years old. The app includes the same addiction prevention and self-exclusion features as the regular FanDuel Sportsbook app, including referrals to help through Kindbridge Behavioural Health.
This emphasis on responsible use is a clear difference from platforms such as Polymarket, where anonymous participation is still the norm. FanDuel consciously positions itself as a ‘safe prediction platform’ in a market that is growing rapidly but is still legally uncertain.
The prediction sector is becoming increasingly crowded. In addition to FanDuel and Polymarket, Kalshi, Crypto.com and Fanatics are also working on similar initiatives. What once started as a niche for crypto enthusiasts is growing into a billion-pound industry where regulation and innovation collide.
In the Netherlands, a well-known presenter was reprimanded for promoting Polymarket. He avoided a fine of €8,700 but was given a warning.