FanDuel Makes Bet on Prediction Markets Popularity

Core Insights - FanDuel is entering the prediction markets sector, joining DraftKings, with the launch of its FanDuel Predicts app in December, developed in partnership with CME Group [2][4] - The app will allow users to trade event contracts on various sports and financial indicators, including the S&P 500, oil prices, and cryptocurrencies [3][4] - The growth of prediction markets is highlighted by a record high of $2 billion in weekly volume as of late October, driven by a diverse range of products [5] Company Developments - FanDuel's CEO, Amy Howe, emphasized the company's commitment to product innovation and consumer protection in the new app, which will include tools for managing exposure and educational resources [4] - The app will operate in states where online sports betting is not yet legal, ceasing operations in states that legalize online sports betting [3] Industry Context - The announcement follows DraftKings' acquisition of Railbird Exchange, indicating a competitive landscape in the prediction markets [5] - Prediction markets are gaining traction due to their ability to offer a wide range of products across various sectors, including finance and entertainment [5][6]