CME Group’s December FanDuel Predicts Launch Intensifies $9.8B Prediction Market Race
CME•Kalshi CEO Tarek Mansour identified derivatives giant CME Group as one of three top competitors, citing its December launch of FanDuel Predicts offering sports and economic event contracts. CME’s entry follows Kalshi’s $9.8 billion 30-day trading volume and $1 billion open interest dominance, signaling intensified rivalry in U.S. regulated prediction markets.
1. Kalshi CEO Reassesses Rivalry
Tarek Mansour, CEO of Kalshi, stated that his main concerns extend beyond Polymarket to include larger players such as CME Group, brokerage Robinhood and major sportsbook operators. He highlighted Kalshi’s 91% share of the regulated U.S. prediction market alongside a $9.8 billion 30-day trading volume and $1 billion in open interest.
2. CME Group Launches FanDuel Predicts
In December, CME Group partnered with FanDuel to introduce FanDuel Predicts, a platform trading event contracts on sports outcomes and economic indicators. This marks CME’s first direct retail prediction market offering, leveraging its clearing and regulatory infrastructure to reach new customer segments.
3. Market Impact and Outlook
CME’s entry into retail prediction markets could diversify its revenue streams beyond traditional derivatives, tapping into high-growth event trading. Intensified competition may pressure Kalshi’s volumes while offering CME an opportunity to capture market share in a space projected to attract increased retail participation.
