FanDuel and CME Group Realign Prediction Market Platform

FanDuel and CME Group are revising their joint-venture prediction market platform. The change means that all sports-related bets on FanDuel Predicts will now be executed through Crypto.com's Nadex exchange, rather than CME. This shift affects less than 1% of the app's activity, which consists mostly of non-sports bets.

CME has a 51% equity stake in the joint-venture and had been processing single-leg sports bets on FanDuel Predicts. However, it will now only handle non-sports wagers. The decision comes after CME expressed reservations about executing sports prediction market wagers, even as it took single-leg sports bets during the World Cup.

Crypto.com has no qualms about handling parlays and sports-related bets. 'When we originally negotiated this deal with FanDuel, our goal and objective had nothing to do with sports,' CME CEO Terry Duffy said in a previous earnings call.

It's unclear when CME will stop executing single-event sports wagers on FanDuel Predicts. The company is seeking regulatory approval for cash-settled futures contracts tied to indexes tracking team performances through a partnership with FutureSports.