FanDuel Files to Take Control of Its Prediction Market Platform
A FanDuel-owned company, New Ventures III, filed an application with the National Futures Association to take sole ownership of its prediction market platform.
It's looking for a new futures commission merchant (FCM) to take greater control of FanDuel Predicts, which it operates through another FCM, CME Group.
FanDuel aims to expand and become more competitive in the booming prediction market industry.
Gambling giant looks to widen control of prediction market product
FanDuel sees the rapidly growing prediction market sector and wants more control of its FanDuel Predicts product. FanDuel is in a joint venture with CME Group, with CME holding a 51% stake and FanDuel a 49% stake. All prediction market contracts offered by FanDuel Predicts are traded on the CME Group exchange.
The new application may take the CME Group out of the equation. The principal owner of FanDuel Predicts would be FanDuel, and the only other named principals are employees of the company.
If the application is approved, FanDuel could pursue partnerships with other contract markets. However, there is no language in the application to remove the CME Group. FanDuel wants more control over the platform and more options in the expanding prediction market industry.
FanDuel Predicts has room to grow
The prediction market product, FanDuel Predicts, is still in its infancy since its December 2025 launch. According to a recent Bank of America analysis, CME Group’s share of the U.S. predictions market is less than 0.5%. Kalshi currently dominates at 91%.
While in operation for less than six months, the prediction market's performance has been moderate at best. However, there are big plans for FanDuel Predict and Flutter Entertainment, which owns FanDuel. Chief executive Peter Jackson has stated that FanDuel will increase its market engagement in the second half of 2026.
Jackson wrote in a press release, “Consistent with our product roadmap, we expect customer engagement and activity to be heavily skewed to the second half of 2026, and our investment will therefore reflect a similar profile.
"Our priority is to build value for the future, while also maintaining the flexibility to accelerate investment. We believe this will position FanDuel to deliver future growth and harness the long-term opportunities for our business.”
FanDuel's major investment
FanDuel invested $50 million in its prediction market platform last year and expects to invest between $250 million and $300 million this year.
There are no revenue figures yet for FanDuel, but if profits increase, the company may invest more. The increase remains to be seen, with no 2026 figures yet, but FanDuel was aggressive in marketing FanDuel Predicts during the NCAA basketball tournament in March.
FanDuel CEO Amy Howe was ousted in May after the Flutter stock lost nearly 60% of its value over a six-month period.
Final thoughts
While sports leagues and players' unions are pushing for more control, FanDuel is trying to get a bigger piece of the pie in the prediction market business, which has seen massive growth.
The FCM application and the investment figures point to that fact. FanDuel sees the opportunity in the rapidly growing market, and its goal is to compete with platforms like Kalshi, which is currently valued at $22 billion.
