In an interview Wednesday with CNBC’s Jim Cramer, flutter CEO Peter Jackson detailed how FanDuel’s parent company’s new prediction market platform will allow people in states where sports betting is illegal to bet on sports outcomes.
“Prediction markets, as you know, are regulated by the CFTC,” Jackson said, referring to the Commodity Futures Trading Commission. “And our partnership with CME will allow us to make these products, our sports products, available in all states where FanDuel does not have a sports betting license.”
FanDuel announced Wednesday that it has partnered with a derivatives market. CME Group We have launched the mobile app “FanDuel Predicts” and plan to release it in December. In addition to sports, the platform will also offer event contracts on “benchmarks such as the S&P 500 and Nasdaq 100, oil and gas prices, gold, cryptocurrencies, and major economic indicators such as GDP and CPI,” the companies said in a press release.
Prediction markets allow users to bet on the outcome of numerous events in fields such as politics, business, pop culture, and sports. Unlike traditional sports betting, it is regulated by the federal government and is considered a trading platform rather than a gambling platform. Online sports betting is currently illegal in some populous states such as California and Texas.
Jackson told Kramer that Flutter has no plans to make its sports prediction products available in regions where users can access FanDuel sports betting. He said he was confident in the success of the new platform, pointing to the strength of the FanDuel brand and Flutter’s experience with global betting exchange Betfair.
“We’re going to spend a lot of money in a disciplined way,” Jackson said. “But just like sports betting and iGaming, it will win in America.”
