FanDuel and CME Team Up for Event Contracts Push

FanDuel and CME Group have partnered to launch event contracts, allowing investors to bet on specific events such as sports, entertainment, and politics. The new products will be available later this year, with multiple trading opportunities per day for as little as $1. The partnership aims to tap into the rapidly growing event contracts market, which has seen significant growth since the 2020 US presidential election.

FanDuel and CME Group have announced a groundbreaking partnership that will revolutionize the financial landscape by introducing event contracts to US investors. This innovative collaboration aims to tap into the rapidly growing event contracts market, which has seen significant growth since the 2020 US presidential election.

The partnership will develop fully funded, event-based contracts that allow users to take simple "yes" or "no" positions starting at $1. These contracts will cover a wide range of markets, including benchmarks like the S&P 500 and Nasdaq-100, commodities such as oil and gas, gold, and cryptocurrencies, as well as key economic indicators like GDP and CPI [1].

Terry Duffy, CME Group Chairman and CEO, emphasized the need to meet the increasing demand for new financial opportunities among individual investors. He stated, "To meet this demand, we have created this innovative partnership, which will operate a non-clearing FCM. Together, our event-based products will appeal to the growing public interest in markets, and we will provide education to attract a new generation of potential traders not active in derivatives today" [1].

Amy Howe, CEO of FanDuel Group, expressed excitement about the partnership, stating, "Partnering with CME Group will unlock our ability to bring even more new and engaging products to FanDuel’s fast-growing customer base. We believe there is potentially a wide audience for trading event-based markets and we want to provide a platform that allows our customers to engage in this activity. We are excited to be partnering with CME Group to design new and engaging products, combining innovation with best-in-class regulatory compliance and consumer protections" [1].

The new products are expected to launch later this year, with multiple trading opportunities available per day. The partnership will set up a joint venture to operate a non-clearing futures commission merchant (FCM), providing FanDuel customers with access to the event contracts. The contracts will be listed on and subject to the rules of CME Group exchanges and available through all participating FCMs, pending CFTC regulatory review [1].

This partnership marks a significant step forward in the financial services industry, combining the reach of FanDuel's customer base with the regulatory expertise of CME Group. The innovative nature of event contracts, however, has not been without controversy, with some arguing that they share similarities with traditional betting. Despite these challenges, the partnership aims to provide a platform that combines innovation with strong consumer protections and clear regulatory compliance [2].

References:
[1] https://www.cmegroup.com/media-room/press-releases/2025/8/20/cme_group_and_fanduelpartnertodevelopinnovativeeventcontractspla.html
[2] https://sbcnews.co.uk/technology/2025/08/21/fanduel-trading-with-cme/