The sportsbook behemoth and CME Group's prediction market technology, FanDuel Predicts, debuted in five states on Monday.

FanDuel anticipates that it is currently accessible in Alabama, Alaska, South Carolina, North Dakota, and South Dakota—five states that forbid internet sports betting—as part of "a phased national rollout." The event contracts mobile application will continue to rollout in additional states in the coming weeks and throughout the upcoming year, according to a statement from CME Group.

"This launch in five states will provide valuable insights into customer engagement with this new platform, enabling us to refine our approach as we expand to additional states in 2026,” said FanDuel Vice President James Cooper in the statement.

In August, CME Group and FanDuel, a division of Flutter Entertainment, announced their collaboration.

FanDuel Forecasts Concentrating on Financial Contracts, Sort of

Because FanDuel Predicts focuses on much more than sports event contracts, it may be well-timed at a time when industry experts are examining the growing potential of prediction markets outside the realm of contentious sports derivatives.

FanDuel Predicts will make event contracts on commodity and cryptocurrency prices, economic data releases, and equities indexes available in all 50 states by utilizing CME's industry experience. Sports derivatives will be available on the site, but only in states (not tribal areas) where such wagering is prohibited. That suggests that FanDuel Predicts may ultimately offer sports derivatives in areas like California, Florida, Georgia, and Texas, just like rival products.

FanDuel Predicts will stop providing sports event contracts in any new states that join the sports wagering party, according to CME. Given that Arizona revoked Underdog's fantasy sports license in response to the company's foray into prediction markets, that was probably a wise decision.

FanDuel is a reliable competitor in the prediction market

FanDuel is the biggest online sports betting operator in the United States and ranks top or second by market share in the 23 states where it provides these services. The company claims to have over 12 million members and one of the most valuable brands in the gaming sector, both of which might be signs of success in the very competitive prediction markets sector.

FanDuel and CME will want those resources since, in recent weeks, it wouldn't be an exaggeration to state that almost every day has seen a fintech or gaming business enter the event contracts market.

Although the number of rivals is clearly increasing, some analysts expect that DraftKings, FanDuel, Kalshi, Polymarket, and Robinhood Markets will eventually form a five-horse race in the domestic prediction market sector.