FanDuel Launches Prediction Market App as DraftKings and Fanatics Push Rival Rollouts
FanDuel launched its new prediction market app, FanDuel Predicts, on Monday, joining a growing number of CFTC-regulated prediction market platforms available in the U.S.
Last week, DraftKings beat FanDuel to market with the launch of DraftKings Predictions across 38 states, with sports contracts available in only 15 of those states — including, most notably, California and Texas, the two largest remaining markets in the U.S. where traditional sports betting is still prohibited by law. Earlier in December, Fanatics Markets, in partnership with Crypto.com, launched in 24 states.
FanDuel and parent company Flutter Entertainment, however, are proceeding more cautiously — at least for now. To begin, FanDuel Predicts is only live in five states: Alabama, Alaska, South Carolina, North Dakota, and South Dakota.
But FanDuel does not plan to sit on the sidelines in other key states for long.
“This launch in five states will provide valuable insights into customer engagement with this new platform, enabling us to refine our approach as we expand to additional states in 2026,” said James Cooper, Senior Vice President, Flywheel and New Ventures at FanDuel, said in the company’s press release.”
Today, @FanDuel, our leading US brand, launched FanDuel Predicts in partnership with @CMEGroup, introducing a new prediction markets platform for customers to engage with the events shaping the world around them.
Launching first in AL, AK, SC, ND, and SD, with a phased rollout… pic.twitter.com/1Is9SlPFOW
— Flutter Entertainment (@FlutterEnt) December 22, 2025
As FanDuel Predicts rolls out to other states, the app will offer markets spanning major macro economic indicators, such as interest rate decisions by the Federal Reserve, sports events as well as pop culture and entertainment markets.
“We’re giving our customers a new platform to engage with the world around them,” said the press release.
FanDuel Predicts partners with CME Group Exchange
FanDuel has partnered with CME Group to launch their initial markets, which is, interestingly, the same exchange DraftKings Predictions partnered with to list their current markets.
What that means is that CME Group is the actual exchange where the markets are created and trades are housed; the new FanDuel and DraftKings apps act as “skins,” while sharing hefty trading fees from users with its exchanger partner as orders are matched with what’s available on CME’s exchange.
Underdog and Fanatics have a similar partnership with Crypto.com. There are some small differences, though. Technically speaking, FanDuel is operating as a Futures Commission Merchant (FCM), while Fanatics and DraftKings are Introducing Brokers (IB). Meanwhile, Underdog does not have any status with the CFTC, serving as a “technical service provider” that offers Crypto.com’s markets to its customers.
In short, the difference is who sits between the customer and the exchange. A Futures Commission Merchant is the account-carrying intermediary that can accept and hold customer funds for trading; an Introducing Broker can market the product and solicit/route orders, but can’t actually hold customer money. In other words, it introduces customers to the firm carrying the account.
DraftKings is the only sports betting company that has actually acquired a Designated Contract Market (DCM), allowing it to eventually list and operate its own federally regulated exchange for event contracts. In October, DraftKings acquired Railbird Exchange, whose team is continuing to build out the exchange infrastructure required that will bring market-creating and trading in-house, and allow DraftKings to capture the economics of operating an exchange over time.
“We acquired Railbird with a team and they have brought a lot of expertise in terms of standing up and building out the exchange platform,” DraftKings Predictions VP/GM Jeanine Hightower-Sellitto told PredictionNews. “We are looking forward to growing that platform and going live in the near future.”
With both companies bringing prediction-market products to a much broader audience, FanDuel and DraftKings are also leaning into a “responsible trading” message — borrowing familiar responsible-gaming tools from its sportsbooks.
FanDuel says it will bring its sportsbook consumer protections into FanDuel Predicts, including the ability for users to set deposit limits, self-exclude, and access mental health resources. Customers can download the app in the App Store and Google Play, and are required to register through the company’s Know-Your-Customer process before trading.