FanDuel Files for New Trading Arm Without CME Link

FanDuel is determined to create a new futures commission merchant (FCM), in an attempt to enhance its flexibility in the fast-growing prediction markets space. 

The application was submitted on April 9 by New Ventures III, a FanDuel-owned entity, according to a filing with the National Futures Association. The development was first spotted by PredictionMarketPulse.

FanDuel as Sole Owner

The company already operates an FCM through FanDuel Predicts, but that business is tied closely to CME Group. 

The existing setup is structured as a joint venture, with FanDuel holding a 49% stake and CME controlling the remaining 51%. All contracts offered through the FanDuel Predicts app are traded on CME’s exchange.

The new filing points in a different direction, listing FanDuel as the only owner with a significant stake and naming only company employees as principals. 

That suggests the new entity would operate independently, without CME involvement. If approved, it would allow FanDuel to partner with other designated contract markets and offer access to contracts beyond CME’s platform.

Among those markets, Kalshi stands out as the dominant player, with others like Polymarket US and Crypto.com also active in the space.

For the time being, the filing does not necessarily signal a break from the current partnership, but rather gives FanDuel additional options as the market keeps expanding.

Building “Value for the Future”

So far, performance in prediction markets has been modest. Peter Jackson, chief executive of FanDuel parent Flutter Entertainment, has said the company expects stronger engagement later in 2026. 

“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,” Jackson wrote. 

“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 plans to spend between $250 million and $300 million on prediction markets this year, after investing $50 million in 2025. 

It has also said it may increase that figure if results improve, though no revenue from the segment is currently included in its 2026 forecasts.

Even with a marketing push during the NCAA basketball tournament, volumes remain low compared to rivals. CME’s reported daily activity sits far behind Kalshi, which dominates the regulated US market. 

A recent analysis by Bank of America estimated Kalshi holds a 91% share, while CME’s share is rounded to zero, a clear gap that further showcases the challenge ahead as FanDuel looks to scale its presence and compete with established players.