CME and FanDuel scale back joint prediction market venture
CME Group and FanDuel are scaling back their joint prediction market venture after failing to gain traction. Under a June 10 partnership announcement, CME retains a 51% stake in FanDuel Predicts but loses its sports business entirely. The venture has pivoted to use Crypto.com's North American Derivatives Exchange, which trades as both OG Prediction Markets and Crypto.com Derivatives North. Flutter, FanDuel's parent company, has seen its stock decline roughly 70% over the past 12 months.
FanDuel Predicts now sits on Crypto.com's Nadex rails instead of CME's own infrastructure, stripping CME of the strategic rationale that justified the partnership. For CME, the retained 51% stake is a financial placeholder with no sports vertical left to grow. Crypto.com assembles a US supplier network one major retail partner at a time, and FanDuel Predicts gives it access to Flutter's established sportsbook user base.
Kalshi built its brokerage distribution advantage by being first; that advantage erodes if large retail brands treat prediction markets as a commodity they can source from multiple venues. The platform that offers FanDuel and Robinhood superior economics will set the template for how US sportsbooks source prediction markets, and CME's diminished role leaves it without a seat at that negotiation.