FanDuel Announces Upcoming Launch of Prediction Markets

The US prediction market industry is about to get a major new player.

FanDuel announced this week that it plans to launch a new prediction market platform before the end of the year. It will focus on US economic indicators, such as oil and cryptocurrencies. Noticeably absent from the announcement were controversial sports prediction markets.

“Expected to launch later this year, the products will include benchmarks such as the S&P 500 and Nasdaq-100, prices of oil and gas, gold, cryptocurrencies, and key economic indicators such as GDP and CPI, with further details of additional offerings to be determined in the coming months,” a press release from FanDuel read.

The sports betting giant has partnered with CME Group to launch the new markets. 

Flutter, FanDuel's parent company, has previously expressed interest in joining the rapidly growing prediction market industry. The operator believes its extensive success with sports betting will help it quickly adapt to prediction markets, including those not involving sports.

With the impending launch of a prediction market platform, FanDuel is set to beat DraftKings into the emerging market. The company’s top rival has been in talks to acquire the CFTC-licensed Raildbird Exchange, but has yet to reach a deal. 

Why Isn't FanDuel Including Sports Markets?

FanDuel's entrance into the prediction market industry isn’t a surprise, but its decision not to include sports is. The lack of heavy taxes and regulations means these controversial markets can offer better prices, giving customers a chance for bigger wins. Launching a sports prediction market would likely help FanDuel poach bettors from its rival online sportsbook.

The relationship between sports betting and the prediction industries may be one reason for FanDuel focusing on economic wagers. 

However, the decision could also indicate the operator’s view on the future of sports prediction markets. More lawsuits are being filed against Kalshi over its markets, and pressure from all sides has led the White House to pause the nomination for an industry-friendly CFTC chair. This has thrown the industry’s future into doubt, making it a risky investment for operators like FanDuel.