Crypto.com Gains Bigger Role in FanDuel’s US Sports Prediction Push

The relationship between crypto and US gambling is becoming harder to separate, and FanDuel’s latest prediction market move is another example of the two industries converging.

FanDuel is shifting its sports and novelty event contracts to Crypto.com’s prediction market platform, giving the crypto exchange a much larger role in the sportsbook operator’s emerging prediction market business. The move comes just weeks after the companies announced their initial partnership and arrives at an important point in the US sports calendar, with the NFL season approaching.

The strategy also creates an interesting shift in FanDuel’s relationship with CME Group, which will retain the financial side of FanDuel Predicts, while Crypto.com takes over sports-focused contracts.

A New Frontier

Flutter Entertainment revealed the change during its second quarter earnings call on August 5. Outgoing CEO Peter Jackson said FanDuel Predicts would move its sports event contracts to Crypto.com “in coordination with CME,” allowing the operator to bring new products to market more quickly.

That speed could be particularly valuable heading into football season. Sports prediction markets are competing for attention from many of the same customers who traditionally use sportsbooks, while FanDuel already has a huge nationwide audience that can be introduced to event contracts through its existing platform.

The arrangement builds on the companies’ June partnership involving Crypto.com’s OG Prediction Markets. Sports and entertainment contracts will now sit within that relationship, along with combination markets that effectively bring a parlay-style approach to prediction trading. FanDuel is not abandoning CME altogether. Contracts tied to financial markets, including major equity indexes, are expected to remain on CME’s platform.

Why CME and Sports Contracts Are Moving Apart

The split raises a question surrounding the rapidly developing prediction market sector: where do sports event contracts actually fit within the financial markets ecosystem?

CME and FanDuel initially announced their partnership nearly a year ago, focusing heavily on economic and financial contracts. FanDuel’s subsequent expansion into sports created a more complicated dynamic, particularly because sports event contracts have become the most visible and controversial part of the prediction market boom.

CME CEO Terry Duffy recently characterized sports event contracts as gambling and suggested the issue could eventually reach the Supreme Court. CME then announced a separate partnership with FutureSports involving indexes based on athlete and team performance, potentially giving the exchange another route into sports-related derivatives.

FanDuel’s move toward Crypto.com consequently looks significant. It allows the sportsbook to keep its financial market activity tied to CME while placing its sports prediction products with a partner that is already deeply embedded in the crypto and digital asset ecosystem.

Prediction Markets’ Revenue Potential

FanDuel’s ambitions also extend beyond simply selling contracts to bettors. Flutter believes the company can become a major liquidity provider for the prediction market industry, using its existing sports trading expertise to facilitate combination markets across different platforms.

Jackson said FanDuel expects the operation to produce around $50 million in revenue during 2026. That would represent a meaningful opportunity from a business that is still relatively young.

The model could become particularly attractive if sports prediction markets continue gaining traction in the US. FanDuel brings the customer base and sports expertise, while Crypto.com brings a major connection to the cryptocurrency trading world and the infrastructure surrounding digital asset users.

That combination could put FanDuel in a strong position as prediction markets attempt to establish themselves alongside traditional sportsbooks. It also puts greater attention on the unresolved regulatory question. The more sports contracts resemble conventional wagers, the more pressure regulators and courts may face to determine whether they belong under gambling laws, derivatives regulation, or some combination of the two.