Flutter Entertainment revealed plans for an innovative sports prediction platform that brings wagering opportunities to states where traditional sports betting remains unavailable, expanding market access across previously underserved regions.
Flutter announced on Wednesday its strategic partnership with derivatives marketplace CME Group to launch FanDuel Predicts, a mobile application scheduled for December release. The platform operates under established federal Commodity Futures Trading Commission oversight, providing consumers with a regulated pathway to participate in prediction markets nationwide.
FanDuel Predicts is a new way to increase the reach of sports wagers in the United States. Prediction markets take the place of traditional sports betting, which is not yet available in large population centers, such as California and Texas, and this means new opportunities for millions of consumers. This framework enables companies to be able to sell sports-related contracts in markets that would not have been able to access legal wagering opportunities.
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FanDuel CEO Peter Jackson highlighted the platform's compliance with federal derivatives regulation during a Wednesday interview with CNBC. The CFTC's regulatory framework for prediction markets as event contracts enables participants to trade positions on outcomes spanning sports results to economic indicators. Jackson further elaborated that this federal supervision has enabled the CME alliance to supply products to customers in every condition where FanDuel does not have licenses to carry out betting on sports.
The platform is not only limited to sports; it also covers contracts on financial benchmarks such as the S&P 500 and the Nasdaq-100, commodity prices of oil, gas, gold, cryptocurrencies, and economic indicators, including GDP and consumer price index data, which provide a wide range of opportunities for market participants.
Flutter's forward-thinking strategy capitalizes on federal regulators' growing support for prediction market innovation. The CFTC announced plans for a public roundtable to modernize prediction market regulations, with Acting Chairman Caroline Pham championing sensible regulation that fosters innovation after previous policies limited market development. Recent CFTC regulatory updates signal promising momentum toward supporting market innovation while maintaining strong consumer protection standards.
Jackson confirmed Flutter's thoughtful approach to maintaining clear separation between prediction and traditional betting products. By strategically targeting sports prediction contracts where FanDuel has no sports betting licenses, the company will maximize consumer access and meet its regulatory obligations.
The announcement is based on the success of Flutter in the U.S. sports betting and iGaming markets. Jackson was optimistic in his projection of market leadership in the prediction platform based on the experience of the company on Betfair, an international betting exchange platform. He emphasized the company's commitment to substantial investment in the platform while expressing optimism about extending its American market success.
CME Group's participation brings derivatives market infrastructure and regulatory expertise to support this venture.
The timing aligns perfectly with surging institutional and retail interest in prediction markets following successful platforms like Kalshi and recent regulatory victories enabling political event contracts. Kalshi's landmark legal victory against the CFTC in 2024 confirmed that well-structured prediction markets operate successfully within existing commodity law frameworks.
Flutter's entry intensifies competition in the expanding prediction market sector, with Gemini pursuing CFTC applications and Polymarket advancing toward full U.S. reentry. The strategy unlocks access to California's 40 million residents and Texas's 30 million population, representing massive untapped revenue potential for the company.
Analysts view prediction markets as a valuable evolution blending entertainment with price discovery, effectively aggregating participant knowledge to establish probabilities on future events.
Flutter shares declined 2% as investors weighed revenue potential against development costs. The company's U.S. operations drive significant growth, with FanDuel leading in legal sports betting states.
The December launch tests whether prediction markets can capture mainstream interest under federal oversight. Success could prompt additional gaming companies to pursue similar market expansion strategies.
