FanDuel Submits Application to Launch New Trading Division Independent of CME

(AsiaGameHub) –   FanDuel is looking to establish a fresh futures commission merchant (FCM) to increase its adaptability within the expanding prediction market sector.

According to a filing with the National Futures Association, the application was lodged on April 9 by New Ventures III, a subsidiary of FanDuel. PredictionMarketPulse was the first to report the move.

FanDuel as Exclusive Owner

While the company currently runs an FCM via FanDuel Predicts, that operation is closely linked to the CME Group.

The present arrangement is a joint venture where FanDuel owns 49% and CME holds a 51% majority. All trades on the FanDuel Predicts app are executed on the CME exchange.

The latest filing indicates a shift, naming FanDuel as the solitary major stakeholder and listing only internal staff as principals.

This implies the new branch would function autonomously, independent of CME. Approval would enable FanDuel to collaborate with different designated contract markets and provide access to products outside of the CME ecosystem.

Notable competitors in these markets include Kalshi, the current leader, along with Polymarket US and Crypto.com.

At this stage, the filing does not necessarily indicate a split from the existing partnership; instead, it provides FanDuel with more alternatives as the sector grows.

Creating “Value for the Future”

Thus far, results in the prediction market have been conservative. Peter Jackson, CEO of FanDuel’s parent company Flutter Entertainment, noted that the firm anticipates higher participation in the latter half of 2026.

“In line with our product strategy, we anticipate that user interaction and volume will be concentrated in the second half of 2026, and our spending will align with that timeline,” Jackson stated.

“Our goal is to generate long-term value while remaining flexible enough to ramp up investment. We believe this strategy will enable FanDuel to capture future growth and capitalize on long-term prospects.”

FanDuel intends to allocate between $250 million and $300 million toward prediction markets this year, following a $50 million investment in 2025.

The company mentioned it might boost that budget if performance improves, though the 2026 financial outlook does not yet include revenue from this division.

Despite marketing efforts during the NCAA basketball tournament, trading volumes remain low compared to competitors. CME’s reported daily volume trails significantly behind Kalshi, the leader in the regulated U.S. market.

A recent analysis by Bank of America estimated that Kalshi controls 91% of the market, while CME’s share is negligible, highlighting the significant hurdle FanDuel faces as it attempts to scale and take on established rivals.