FanDuel Predicts Regulation: Is FanDuel Predicts Legal and How Is It Regulated?

FanDuel Predicts gives U.S. customers access to federally regulated event contracts covering sports, financial markets, economic indicators, commodities, cryptocurrency and other real-world events.

The regulatory structure is different from FanDuel Sportsbook. FanDuel Prediction Markets LLC is registered with the Commodity Futures Trading Commission (CFTC) as a futures commission merchant and is a member of the National Futures Association (NFA). The contracts available through FanDuel are listed on regulated derivatives exchanges rather than created and priced by FanDuel in the same way a sportsbook creates its own markets.

FanDuel initially launched Predicts in December 2025 through its partnership with CME Group. It has since expanded nationwide for eligible non-sports contracts and added additional sports and entertainment products through Crypto.com and OG Prediction Markets.

How Is FanDuel Predicts Regulated?

FanDuel Predicts operates through the federal derivatives-market framework under the Commodity Exchange Act rather than relying on FanDuel's state sportsbook licenses.

The entity carrying customer accounts is FanDuel Prediction Markets LLC, which is a CFTC-registered futures commission merchant, or FCM. It is also an NFA member.

CME Group states that FanDuel Prediction Markets LLC is jointly owned and operated by CME Group Inc. and FanDuel Group Inc. FanDuel's current regulatory disclosures also confirm that the company operates as an FCM through which customers can access exchange-traded event contracts.

This is an important part of the structure because FanDuel Predicts itself is not simply acting as an unregulated website offering its own prediction contests. Customer accounts sit with a federally registered FCM, while the contracts are listed on CFTC-regulated derivatives venues.

FanDuel is also a non-clearing FCM. Its disclosures state that transactions are ultimately cleared through another clearing FCM and registered derivatives clearing organizations.

FanDuel Predicts Is a Joint Venture With CME Group

FanDuel and CME Group first announced their prediction-market partnership in August 2025 and launched FanDuel Predicts on December 22, 2025.

The platform initially went live in Alabama, Alaska, North Dakota, South Carolina and South Dakota before expanding through the rest of the country. CME and FanDuel created FanDuel Prediction Markets LLC as their jointly owned FCM, giving FanDuel a regulated route for distributing CME-listed event contracts directly to retail customers.

By January 2026, FanDuel Predicts had expanded nationwide for financial and other eligible contracts. Flutter Entertainment, FanDuel's parent company, later confirmed that financial contracts were available nationwide while sports event contracts were offered in 18 states.

FanDuel took another step in April 2026 by introducing its One App approach. Instead of treating Predicts entirely as a separate customer experience, FanDuel now dynamically presents its sportsbook or prediction-market products according to the user's location and the products permitted there.

FanDuel Predicts Also Uses OG Prediction Markets

CME Group is no longer the only source of contracts available through FanDuel Predicts.

In June 2026, FanDuel announced a partnership with Crypto.com and OG Prediction Markets, adding new sports, entertainment and combination event contracts to the platform.

FanDuel described OG Prediction Markets as Crypto.com's CFTC-regulated exchange and clearinghouse. Customers began receiving access to contracts from both CME Group and OG Prediction Markets as part of the expansion.

That makes the current FanDuel Predicts structure broader than it was at launch. FanDuel Prediction Markets LLC remains the regulated FCM carrying customer accounts, while eligible contracts can come from multiple CFTC-regulated exchange venues.

How Do FanDuel Predicts Event Contracts Work?

FanDuel Predicts customers trade event contracts based on whether a defined outcome will occur.

Many contracts use a simple Yes/No structure. A market price can also be interpreted as the market's assessment of the probability of the event occurring.

For example, a Yes position trading around 40¢ generally corresponds to a market assessment of roughly a 40% probability. If the qualifying outcome occurs, the contract settles according to the rules established for that market. If it does not, the opposing side wins.

FanDuel's regulatory disclosure describes these products as exchange-traded event contracts and notes that they are cash-settled and fully collateralized. Traders can lose the full amount committed to a position.

Markets available through FanDuel Predicts can include:

• Sports
• Stock-market benchmarks
• Economic indicators
• Commodities
• Cryptocurrency
• Culture and entertainment
• Other eligible real-world events

The exact selection depends on the contracts currently listed by the exchanges and the user's location.

What States Have FanDuel Predicts?

FanDuel Predicts now has a nationwide footprint, but nationwide availability does not mean every customer receives the same markets.

FanDuel says eligible financial and economic event contracts are available nationwide. Sports contracts have a much narrower geographic footprint. Flutter has confirmed sports availability in 18 states, while current FanDuel app materials list the following states:

FanDuel originally built its sports-contract strategy primarily around states where its traditional online sportsbook was not available. Its launch announcement said sports contracts would be offered in states without legal online sports betting and that FanDuel would stop offering them if a state subsequently legalized online sports betting.

Availability can nevertheless change because of new state laws, litigation, exchange decisions or FanDuel's own compliance policies. Customers should therefore check the current FanDuel app rather than assuming a historical state list remains permanent.

Is FanDuel Predicts Legal in Every State?

This question now requires more nuance than simply answering yes or no.

FanDuel Predicts operates through entities registered under the federal Commodity Exchange Act. FanDuel Prediction Markets LLC is a CFTC-registered FCM, and its event contracts are offered through CFTC-regulated exchanges.

At the same time, states and the prediction-market industry are actively fighting over whether federal derivatives regulation prevents states from applying their own gambling and gaming laws to sports event contracts.

That dispute has produced conflicting federal appellate decisions.

In April 2026, the U.S. Court of Appeals for the Third Circuit ruled in KalshiEX v. Flaherty that the Commodity Exchange Act likely preempts New Jersey from applying its state gambling laws to sports contracts traded on a CFTC-regulated designated contract market.

The Ninth Circuit reached the opposite conclusion in August. In the Nevada litigation, the court held that Kalshi had not shown that federal commodities law preempts Nevada's gaming regulations as applied to sports event contracts.

The conflicting decisions created a major split over the balance of state and federal authority. New Jersey officials filed a petition with the U.S. Supreme Court on September 2, 2026, asking the Court to decide whether federal law prevents states from regulating sports contracts offered through CFTC-registered markets.

So while FanDuel Predicts operates through federally regulated entities, the extent to which individual states can restrict certain event contracts remains an unsettled legal question.

This page is provided for informational purposes and should not be considered legal advice.

The CFTC Is Also Rewriting Prediction Market Rules

The legal landscape is changing at the federal level as well.

In February 2026, the CFTC withdrew an earlier event-contract rule proposal and a 2025 staff advisory covering sports contracts. The agency then opened a broader prediction-market rulemaking process in March.

On June 10, the CFTC proposed a new framework for deciding when event contracts involving activities such as gaming, terrorism, assassination, war or unlawful conduct can be prohibited as contrary to the public interest.

The proposal specifically addresses the rapid growth of sports event contracts and would create a structured process for reviewing contracts under Section 5c(c)(5)(C) of the Commodity Exchange Act. As of October 2026, that process remains part of the developing federal regulatory framework rather than a final resolution of the state-versus-federal dispute.

FanDuel itself acknowledges this uncertainty. Its June 2026 risk disclosures warn customers that regulatory actions and litigation involving event contracts could potentially result in trading halts, liquidations, cancellations or restrictions on particular products.

FanDuel Predicts vs. FanDuel Sportsbook

FanDuel now places both products under the broader FanDuel ecosystem, but the underlying regulatory structures remain different.

This split explains why someone in California or Texas can access FanDuel sports event contracts through Predicts even though FanDuel Sportsbook does not operate there.

Conversely, a customer in a state with FanDuel Sportsbook may be directed toward the sportsbook for sports while still having access to eligible non-sports prediction products.

Is FanDuel Predicts Federally Regulated?

Yes, but the wording needs to be precise.

FanDuel Prediction Markets LLC is federally regulated as a CFTC-registered futures commission merchant and is an NFA member. The event contracts customers trade are listed on regulated derivatives exchanges such as CME Group exchanges and, following FanDuel's June 2026 expansion, OG Prediction Markets.

It is therefore more accurate to describe FanDuel Predicts as a platform providing access to federally regulated event contracts than to suggest that FanDuel itself operates the underlying exchange.

Bottom Line

FanDuel Predicts has developed considerably since its December 2025 launch.

FanDuel Prediction Markets LLC is a CFTC-registered FCM and NFA member jointly owned and operated by FanDuel Group and CME Group. Customers can access event contracts listed through regulated exchanges, including CME Group venues and OG Prediction Markets.

Eligible non-sports contracts are available nationwide, while sports contracts are currently offered in 18 states.

The biggest remaining question is legal rather than operational. Federal regulators oversee the derivatives-market structure, but states continue to argue that sports event contracts fall within their traditional authority over gambling. Conflicting federal appeals-court rulings in New Jersey and Nevada have made that issue even more important, and the Supreme Court has now been asked to intervene.

For customers, the practical result is simple: FanDuel Predicts is a federally regulated event-contract product with nationwide reach, but the contracts available can differ substantially depending on location and the rapidly changing regulatory environment.

Related

• FanDuel Predicts Main Page
• FanDuel Predicts Banking Guidelines
• FanDuel Predicts Costs and Fees