FanDuel has added contracts from a second exchange to its prediction market product, through a partnership with Crypto.com.
FanDuel said the partnership, announced Tuesday by press release, will give customers “a wider variety of markets across sports and entertainment categories” and “deepen customers’ ability to trade combinations of event contracts,” or parlays.
“These additional product sets give our customers more choices by expanding the breadth of sports and entertainment contracts on our platform,” FanDuel Senior Vice President for New Ventures James Cooper said.
FanDuel Predicts offers trading on non-sports outcomes like financial indices and cryptocurrency prices in all 50 states, and sports event contracts in states where FanDuel does not operate a state-regulated sportsbook.
Slow start with CME
The new partnership comes after a slow start for FanDuel’s prediction market as a joint venture with traditional commodities giant CME. FanDuel launched its prediction market product in December, using CME contracts.
FanDuel does not publish exact volume numbers from its exchange, but data from CME suggests that it is a long way from prediction market leaders. CME has averaged around $4 million worth of contracts traded per day in recent days. CME typically reports three days’ worth of data on Mondays, leading to large swings in volume between Mondays and the rest of the week.
Prior to the Crypto.com deal, FanDuel only offered CME contracts, while CME’s contracts were also available on DraftKings Predictions, so FanDuel’s own volume was likely lower than $4 million per day.
In contrast, FanDuel’s main sportsbook rival DraftKings has been more successful by offering contracts from Crypto.com alongside CME contracts. On Tuesday, DraftKings revealed that its annualized volume in May was $3.1 billion, suggesting volume of around $8.5 million per day. Its annualized “consumer” volume – which excludes market makers in order to create a better comparison to sports betting handle – was $1.3 billion, suggesting consumer volume of about $3.6 million per day.
Even that is still a long way behind Kalshi, which has averaged more than $650 million in volume per day over the past week.
FanDuel will offer the contracts via FanDuel Predicts, its registered futures commission merchant (FCM), which is 51%-owned by CME, a spokesperson told InGame. FanDuel also has an active FCM application of its own, but that has not yet been approved.
