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FanDuel Predicts is moving its sports event and novelty contracts to Crypto.com from CME Group, according to comments from Flutter Entertainment CEO Peter Jackson during the company’s second-quarter earnings call.
The shift matters because it changes where FanDuel will list some of its prediction market-style products ahead of the NFL season, while leaving its financial derivatives business with CME. Jackson said the new setup is meant to speed product delivery as FanDuel expands in the category.
“This new exchange arrangement will ensure we can deliver new products at pace ahead of the NFL season start,” Jackson said on the call.
FanDuel splits contracts between Crypto.com and CME
According to Flutter, the move to Crypto.com covers entertainment, novelty, and sports event contracts, as well as combination markets, or parlays, tied to those products. FanDuel announced a prediction market partnership with Crypto.com in June.
Financial derivatives, including contracts linked to major equity indexes, will remain with CME. That leaves FanDuel’s prediction market business split across two exchange partners rather than fully housed with CME, which unveiled its partnership with FanDuel nearly a year ago around economic data and financial markets.
The arrangement also comes after CME CEO Terry Duffy said on his company’s second-quarter earnings call that sports event contracts are “gambling.” CME later announced a partnership with FutureSports that could develop into a challenge to sports contracts offered by yes/no exchanges.
Flutter points to product speed and market-making revenue
Jackson framed the Crypto.com move as a product and execution decision rather than a full break from CME. He said Flutter is coordinating the change with CME and keeping the financial side of the business there.
Flutter also used the earnings call to highlight the revenue opportunity around liquidity and market making. Jackson said the company believes it is:
“Uniquely positioned to provide liquidity for combination markets across different prediction market platforms with a market-making offering that can scale rapidly and at low incremental investment.”
He added that Flutter expects to generate about $50 million in market-making revenue this year.
“It is very early days, but we would expect to generate approximately $50 million of revenue from market making this year, demonstrating both the good progress made so far and the potential opportunity,” Jackson said.
What remains unclear, however, is exactly which novelty contracts are moving and when the affected FanDuel Predicts products will migrate to or launch on Crypto.com. But based on Flutter’s comments, the timeline is tied to getting new offerings in place before the start of the NFL season.
