Morning Minute: FanDuel Enters Prediction Markets

Morning Minute is simply a regular newsletter written by Tyler Warner. The investigation and opinions expressed are his ain and bash not needfully bespeak those of Decrypt. Subscribe to the Morning Minute on Substack.

GM!

Today’s apical news:

• Crypto majors dip past rebound connected US Gov’t reopening news; BTC astatine $103,200

• XRP leads majors up of its ETF motorboat this morning

• FanDuel partners with CME to motorboat prediction marketplace app ‘FanDuel Predicts’

• New ZEC DAT Leap Therapeutics shares leap 400% connected Thursday

• Lido proposes enshrined buybacks on with different changes

Sportsbooks are piling into prediction markets.

But are they present to stay? Or is this a impermanent workaround?

FanDuel, successful concern with CME Group, announced the motorboat of a new prediction-markets platform set to spell unrecorded in December 2025.

The caller standalone mobile app volition beryllium named ‘Fanduel Predicts’ and volition let users to trade event-based contracts, initially covering sports, economical indicators, crypto and more.

This large announcement comes conscionable a fewer weeks aft DraftKings announced its ain introduction into prediction markets, putting some large U.S. sport-betting brands successful the prediction-market race.

“We can’t hold to bring FanDuel’s proven attack to merchandise innovation into this dynamic sector,” said Amy Howe, CEO astatine FanDuel. “Our concern with CME Group allows america to leverage their heavy marketplace expertise built implicit decades portion delivering the seamless, accessible and trusted acquisition our customers expect.”

“Our caller lawsuit contracts connected benchmarks, economical indicators and present sports volition entreaty to a caller procreation of imaginable participants who are not progressive successful these markets today,” said CME Group Chairman & Chief Executive Officer Terry Duffy. “This motorboat volition dramatically grow our organisation and reach, connecting straight with FanDuel’s millions of registered U.S. users.”

So DraftKings and present FanDuel are jumping into the prediction marketplace space.

But - are they present to stay?

A notable facet of FanDuel’s announcement was somewhat buried successful the 2nd paragraph -

“As caller states legalize online sports betting, FanDuel volition cease offering sports lawsuit contracts successful those states.”

That makes this determination consciousness much similar a impermanent span solution than a imperishable one.

An evident question has arisen this twelvemonth with Kalshi’s emergence successful the sports betting rankings - wherefore are prediction markets allowed to connection sports markets successful states that DraftKings and FanDuel are banned successful (due to sports betting restrictions)?