According to a source, FanDuel’s prediction market partner CME may soon provide contracts for sporting events.
Before the year ends, CME will provide contracts “tied to sports games,” according to a report published by Bloomberg on Thursday. However, the story did not elaborate on the nature of these contracts.
In August, CME announced a collaboration with FanDuel to introduce FanDuel Markets, a prediction markets platform. However, sports are not anticipated to be included in the FanDuel Markets offering, at least initially. Sports betting licensees have received warnings from regulators in states including Ohio, Arizona, and Michigan that containing contracts for sporting events may jeopardize their sportsbook licenses.
ALSO READ: Nevada Gaming Control Board warns licensees against prediction market involvement.
However, it seems that CME is thinking about collaborating with other companies that would be more open to entering into contracts for sporting events. According to the Bloomberg article, CME may make the contracts available to “traditional retail investing brokerages” and publish them “on similar platforms” to its FanDuel markets app.
Are FanDuel licenses still at risk?
Although FanDuel does not provide sports event contracts directly, its licenses may still be at risk from contracts provided by a partner company.
“The reputation of the licensee and the integrity of sports gaming in Ohio are called into question by any business relationship between an Ohio sports gaming licensee (including its related entities or those under common ownership) and any entity(s) offering or facilitating the offering of unlicensed sports gaming in Ohio,” the letter stated.
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