FanDuel Launches CFTC-Regulated Predicts App Across 16 States
FanDuel launched its CME Group–backed prediction market app, FanDuel Predicts, last year and has expanded it to 16 states. The CFTC-regulated platform lets users trade event-derivatives, giving FanDuel access to billions in weekly wagers and extending its addressable market ahead of state-level sports betting legalizations.
1. FanDuel Enters Prediction Markets
FanDuel launched FanDuel Predicts in partnership with CME Group last year, extending its offering beyond traditional sports betting. The platform is live in 16 states and allows users to place derivative-style wagers on sports outcomes and other events.
2. Regulatory Framework Distinctions
Unlike state-regulated sportsbooks, prediction markets are overseen by the CFTC and classify bets as trading products. This federal oversight lets FanDuel offer Predicts in jurisdictions where state laws prohibit its core sportsbook.
3. Competitive Implications for DraftKings
DraftKings also rolled out a similar prediction market product last year, signaling intensifying competition. FanDuel’s move to create a "reasonable facsimile" of its sportsbook in Predicts challenges DraftKings to defend market share.
4. Implications for DraftKings Growth
By tapping billions in weekly wagers on prediction markets, FanDuel aims to grow its addressable audience ahead of new state sports-betting regulations. DraftKings may need to accelerate its own innovations to maintain pace.