Flutter is making a notable change to its prediction market strategy. FanDuel Predicts will now route all of its sports event contracts through Crypto.com's Nadex exchange, while longtime partner CME Group shifts its focus almost entirely to financial markets.
The move was announced alongside Flutter Entertainment's second-quarter earnings and comes at a time when prediction markets are becoming an increasingly important part of the company's long-term strategy. Even though FanDuel Predicts is still in its early stages, Flutter made it clear that prediction markets remain a priority, especially as its new market-making business begins generating meaningful revenue.
Crypto.com Takes the Lead
When FanDuel Predicts launched in late 2025, CME Group handled the platform's sports contracts. Crypto.com entered the picture this summer by supporting combination contracts, but its role has now expanded significantly. Going forward, Crypto.com's Nadex exchange will power all sports and novelty contracts on FanDuel Predicts.
CME will continue handling financial event contracts, which Flutter said account for less than 1% of activity on the platform. Flutter executives said the change offers two key advantages. Customers will gain access to a broader catalog of contracts, while the company also expects a modest financial benefit from using Crypto.com's infrastructure.
CME Wants to Focus on Financial Markets
The decision also reflects a shift in CME's approach. During its recent earnings call, CME CEO Terry Duffy openly questioned some sports-related event contracts, particularly products that resemble traditional sportsbook offerings or multi-leg combinations. While CME isn't leaving sports completely, the company appears more interested in financial-style contracts than expanding deeper into sports-focused prediction markets.
That helps explain why the partnership is evolving rather than ending. Each company is focusing on the area where it believes it has the strongest long-term opportunity.
Flutter Finds Another Growth Engine
One of the more interesting updates from Flutter's earnings wasn't FanDuel Predicts itself. Instead, it was the rapid growth of the company's market-making business. Flutter expects that operation to generate roughly $50 million in both revenue and adjusted EBITDA during 2026. Executives said the business is benefiting from the company's years of experience pricing complex sports markets, although they declined to identify which prediction market platforms they're currently providing liquidity to.
Some of the biggest takeaways included:
- Crypto.com now powers all FanDuel Predicts sports contracts.
- CME remains the majority owner of the joint venture.
- Flutter expects about $50 million in market-making during 2026.
- FanDuel Predicts remains in investment mode with revenue still considered immaterial.
- CEO Peter Jackson will step down on Sept. 30, with Dan Taylor taking over on Oct. 1.
The Trade Handle Prediction Markets Take
Flutter's latest announcement shows that its prediction market strategy is becoming much broader than simply operating FanDuel Predicts. While the consumer-facing platform is still growing, the company's market-making business is already generating meaningful revenue. It could become a key competitive advantage as more exchanges enter the space.
The shift away from CME for sports contracts also highlights how quickly this industry is evolving. Companies are adjusting their partnerships, infrastructure, and product offerings almost in real time as the regulatory landscape evolves and customer demand shifts. Rather than treating prediction markets as a side project, Flutter appears to be building multiple businesses around the sector. Whether through FanDuel Predicts, liquidity provision, or future partnerships, the company is positioning itself to participate across multiple layers of the prediction market ecosystem rather than relying on just one.