FanDuel Expands into Prediction Markets Amid Regulatory Landscape

FanDuel, the largest online sportsbook in the United States, is expanding its business into the prediction market sector, a move prompted by the limitations of online sports betting in various states. The company launched its prediction market app, FanDuel Predicts, in collaboration with the CME Group, and it is currently available in 16 states. This app allows users to bet on a variety of outcomes, from sports events to economic indicators, and is regulated differently than traditional sports betting, being overseen federally by the Commodity Futures Trading Commission (CFTC).

CNNFanDuel registers new interest in prediction market contracts, without CME involved this time – CDC Gaming

Prediction markets have gained traction, with platforms like Kalshi and Polymarket facilitating billions of dollars in transactions weekly. These markets allow users to wager on diverse topics, including political outcomes and weather forecasts. FanDuel's entry into this space is seen as a strategic response to the growing popularity of prediction markets, which could potentially siphon off business from traditional sportsbooks. FanDuel President Christian Genetski noted that while FanDuel Predicts does not replicate the full sportsbook experience, it offers a similar engagement for users in states where sports betting is illegal.

CNNFanDuel registers new interest in prediction market contracts, without CME involved this time – CDC Gaming

As FanDuel ventures into prediction markets, it faces scrutiny regarding potential insider trading and ethical implications of betting on sensitive topics such as elections and geopolitical events. The White House recently cautioned staff against engaging in insider trading on these platforms, highlighting the risks associated with prediction markets. Despite these concerns, Genetski emphasized that FanDuel would not allow betting on controversial subjects, stating, “We would never offer anything to do with death, regime change, war.”

CNNFanDuel registers new interest in prediction market contracts, without CME involved this time – CDC Gaming

In addition to FanDuel Predicts, the company has filed to create a new futures commission merchant (FCM) to offer prediction market contracts independently of the CME Group. This new entity, New Ventures III, was registered with the National Futures Association on April 9, 2026. This move indicates FanDuel's commitment to expanding its footprint in the prediction market space, potentially increasing its market share and user engagement.

FanDuel registers new interest in prediction market contracts, without CME involved this time – CDC GamingCNN

Critics have raised concerns about the societal impact of prediction markets, particularly regarding gambling addiction and the ethical implications of allowing bets on sensitive issues. FanDuel and its competitor DraftKings have faced scrutiny over their core sports betting operations, with ongoing discussions about the need for responsible gambling measures. While both companies assert they have protocols in place to mitigate these issues, the expansion into prediction markets may amplify existing concerns.

CNNFanDuel registers new interest in prediction market contracts, without CME involved this time – CDC Gaming

Peter Jackson, CEO of FanDuel's parent company Flutter, remarked that the prediction market initiative allows for “a significant and incremental expansion of the US addressable market ahead of further state regulation.” Genetski reiterated FanDuel's focus on serving sports fans, stating, “We are definitely sports-focused at FanDuel. We are a sports brand and a sports company.”

CNNFanDuel registers new interest in prediction market contracts, without CME involved this time – CDC Gaming

• “It’s not the full panoply of everything you can do on the FanDuel sportsbook,” — Christian Genetski, President of FanDuel

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• “We would never offer anything to do with death, regime change, war,” — Christian Genetski, President of FanDuel

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• “enables us to harness a significant and incremental expansion of the US addressable market ahead of further state regulation — a space where our scale and experience give us a natural advantage,” — Peter Jackson, CEO of Flutter

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FanDuel's strategic pivot into prediction markets reflects a response to regulatory challenges in sports betting while navigating the complex ethical landscape surrounding this emerging sector.

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