FanDuel and CME Group are revising their prediction market joint-venture so that all sports-related bets placed on the FanDuel Predicts brokerage app will be executed via Crypto.com’s Nadex exchange instead of CME.
To date, CME has executed single-leg sports bets placed in FanDuel Predicts, while the app incorporated Nadex in June to handle parlays. Going forward, CME will only process the non-sports bets on FanDuel Predicts, which represent less than 1% of the app’s activity. CME has a 51% equity stake in the joint-venture.
The announcement came tucked into a newsy second-quarter earnings report from FanDuel parent Flutter Entertainment. Flutter announced that longtime CEO Peter Jackson would step down after nine years at the helm, and quarterly earnings trailed consensus estimates. In addition, FanDuel’s U.S. betting handle showed little growth, and the parent company lowered its full-year revenue expectations.
The stock (NYSE: FLUT) closed Wednesday trading down more than 11% at $92.91 per share.
CME’s reduced role in providing the infrastructure for FanDuel Predicts is another sign of differences between the financial derivatives powerhouse and gambling company. CME and FanDuel announced their joint-venture less than a year ago.
