- All FanDuel Predicts sports and novelties contracts move to Crypto.com’s exchange, Flutter said Wednesday.
- CME Group keeps its 51% stake in the venture but will clear only financial contracts.
- FanDuel Predicts trades under federal commodities rules rather than state gaming licenses and now runs nationwide.
- Flutter posted a $296 million net loss as group revenue rose 3% to $4.33 billion.
CHICAGO – FanDuel Predicts will move every sports and novelty event contract off CME Group’s exchange to one run by a Crypto.com affiliate, Flutter Entertainment said Wednesday, leaving CME clearing only the app’s financial contracts despite its 51% majority stake.
CME Keeps The Majority, Not The Sports Contracts
Flutter set the change out in a single sentence. “In coordination with CME, we have agreed that all FanDuel Predicts sports and novelties contracts will now be moved to Crypto.com, while continuing to provide our customers access to CME’s financial markets,” the company said in its second-quarter results announcement.
The equity does not move with the business. CME Group holds 51% of the joint venture and FanDuel the remaining 49%, according to CME’s most recent annual report. CME will keep that majority while the sports and novelties contracts list and clear somewhere else.
Those contracts go to OG Prediction Markets, the exchange and clearinghouse brand of Crypto.com affiliate North American Derivatives Exchange Inc., which is registered with the Commodity Futures Trading Commission as a designated contract market and derivatives clearing organization. Crypto.com was already a listing venue for part of the app after a June expansion deal, and it now takes the rest. The venture is FanDuel’s entry in prediction markets, which trade as federally regulated event contracts rather than as licensed sports bets.
The App Trades Under Federal Rules, Not State Licenses
FanDuel Predicts launched Dec. 22, 2025, in Alabama, Alaska, North Dakota, South Carolina and South Dakota, five states where online sports betting is not legal. Flutter said in a June 10 announcement that the app is available in all 50 states. The product lets the company acquire customers ahead of sports betting regulation in new states, Flutter said in the results announcement.
Event contracts clear under Commodity Futures Trading Commission rules rather than state gaming licenses, which is what lets a single app run where most USA gambling sites cannot. In the five launch states, FanDuel Sportsbook still cannot take an online bet.
What CME retains is the financial half of the menu. The app lists contracts on sports, entertainment, financial benchmarks and economic indicators, and only the last two stay with the exchange, covering products such as the S&P 500, Nasdaq-100, oil, gas, gold, cryptocurrencies, GDP and CPI.
Duffy Called Sports Markets Gambling, Then Announced Sports Indexes
Two weeks before the switch, Terry Duffy, CME Group’s chief executive, told analysts on the company’s July 22 second-quarter earnings call that many sports prediction markets amounted to gambling, and that he expected the question to reach the U.S. Supreme Court.
Seven days after that call, CME announced its own route into sports. The exchange will list futures and options on FutureSports Performance Indexes, cash-settled contracts built from officially reported, league-approved statistics from professional and college sports, with the first monthly and quarterly contracts due to trade this summer pending regulatory review. “CME Group is where the world comes to manage risk, and that’s exactly what we’re bringing to the business of sports leagues,” Duffy said in the exchange’s FutureSports partnership announcement.
CME named stadium owners and operators, sports sponsors and endorsers, insurers, apparel manufacturers and league broadcasting partners among the intended users, alongside institutions and individuals seeking trading opportunities.
Market Making Is Flutter’s $50 Million Line, Whatever The Venue
Flutter’s revenue from the app comes from the pricing side rather than the listing side. Market making produced $6 million of revenue in the quarter, and Flutter said it expects to generate about $50 million of revenue from market making this year.
The market-making operation stays with Flutter regardless of which exchange lists the contract.
Flutter Posted A $296 Million Loss For The Quarter
The disclosure sat inside a quarter of falling earnings. Group revenue rose 3% to $4.33 billion while adjusted EBITDA fell 45% to $508 million. Flutter posted a net loss of $296 million, $274 million of it attributable to its own shareholders, against $37 million of net income a year earlier.
The U.S. business shrank. Revenue there fell 6% to $1.68 billion, and Flutter cut full-year group guidance to $17.91 billion of revenue and $2.655 billion of adjusted EBITDA at the midpoints, reductions of $395 million and $210 million.
Flutter said the new exchange arrangement will let it deliver new products at pace ahead of the start of the NFL season. CME’s first FutureSports index futures are due to trade this summer.