FanDuel, the online gaming firm in North America, part of Flutter Entertainment (NYSE: FLUT), and CME Group (NASDAQ: CME), the world’s derivatives marketplace, unveiled that they will launch prediction markets via the FanDuel Predicts app that will expand access to financial markets for clients in the US.
FanDuel Predicts will launch in December as a standalone mobile application. Subject to “appropriate regulatory filings, the app will provide access to sports event contracts across baseball, basketball, football, and hockey.”
In states where online sports wagering is not yet legal, customers who are not on tribal lands will be “able to trade event contracts on the outcome of sporting events.”
As new states legalize online sports wagering, FanDuel will “cease offering sports event contracts in those states.” In addition to sports, event contracts will be offered on 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.”
FanDuel will extend its consumer protection program to the FanDuel Predicts app. The platform will enable clients to trade in a responsible manner “with tools to help manage exposure, track spending and make informed trading decisions.”
Within the app, customers will find educational resources to learn “about prediction markets and how to buy and sell event contracts.” Customers may set deposit limits and deposit alerts that “apply to all FanDuel products and may self-exclude, just as they can on all FanDuel products today.”
When customers sign up for FanDuel Predicts, they will reportedly have to undergo FanDuel’s thorough “Know Your Customer” sign up process “providing information including their birth date, Social Security number, home address, banking information and a valid ID.”
After the account has been created, they will then be “able to buy or sell event contracts.”
This alliance combines FanDuel’s customer experience and mobile technology with CME Group’s expertise in derivatives and risk management, creating a platform that brings together entertainment and financial markets.
