FanDuel just signed a partnership deal with derivatives giant CME Group. The two companies are creating something completely new, event-based contracts that let people trade on everything from stock indexes to crypto prices.
Amy Howe, FanDuel’s CEO, called it a way to “bring even more new and engaging products to FanDuel’s fast-growing customer base.”
CME Group’s Chairman and CEO Terry Duffy sees it differently. He thinks “individual investors are increasingly sophisticated and continually pursuing new financial opportunities.”
Why FanDuel’s Expanding Beyond Sports Betting
This isn’t just about adding another product line. FanDuel wants to tap into people’s growing interest in financial markets, not just sports outcomes.
Howe believes there’s “potentially a wide audience for trading event-based markets.” The company’s betting on the idea that their customers want more ways to put money on predictions.
CME Group sees a chance to reach “a new generation of potential traders not active in derivatives today.” They’re basically trying to make complex financial trading feel as simple as placing a sports bet.
What These New Contracts Actually Offer
The products launching in late 2025 will cover major benchmarks like the S&P 500 and Nasdaq-100. Oil and gas prices, gold, cryptocurrencies and key economic indicators like GDP and CPI are all fair game.
Here’s the kicker – customers can take “yes” or “no” positions for as little as $1. Multiple trading opportunities will pop up throughout each day.
The partnership creates a joint venture that’ll operate a non-clearing futures commission merchant (FCM). That’s regulatory speak for the entity that’ll actually handle the trades through FanDuel’s platform.
How This Changes FanDuel’s Business Model
Everything hinges on getting approval from the Commodities Futures Trading Commission (CFTC). Once that’s sorted, the contracts get listed on CME Group exchanges and follow their rules.
The timing coincides with FanDuel’s other expansion moves. They’re launching mobile sports betting in Missouri on December 1, 2025, through a deal with St. Louis City SC.
CME Group’s stock currently trades at $274.61 per share with a market cap just under $99 billion. For them, this partnership opens up a massive new customer base that’s already comfortable with risk-based entertainment.
The real test will be whether FanDuel’s sports bettors actually want to trade financial markets, or if this ends up being two completely different audiences.
