Flutter has announced that all sports and novelty event contracts on FanDuel Predicts will move from CME Group to Crypto.com to ensure the platform can “deliver new products at pace” ahead of the upcoming NFL season this September.
Financial event contracts such as major stock indices, oil, natural gas and gold will continue to operate on CME Group’s platform, Flutter stated on its Q2 earnings call on Wednesday, 5 August.
In June, FanDuel Predicts was broadened with new sports and entertainment contracts through a partnership with CFTC-licensed exchange Crypto.com and its clearing house, OG Prediction Markets.
Flutter said in the Q2 results presentation that the expanded offering ahead of the World Cup had “significantly enhanced our product proposition”.
The switch of sports and novelty markets come after CME Group chair and CEO Terry Duffy opined in July that sports contacts are “gambling” and that he expects the Supreme Court to have the final say as to whether these should be deemed financial products.
Step change
Responding a question from on the earnings call from Craig-Hallum Capital Group’s Ryan Sigdahl regarding the migration, outgoing CEO Peter Jackson said: “We are excited about extending the sports and novelties catalogue that we’ll have available for our customers, as a result of switching to this new venue for those products.
“We’ll keep our existing financial markets with CME, so the so the economics for the financial markets with CME stay broadly as they were.
“I think there’s a slight positive for us in moving towards Cypto.com – it’s a modest economic benefit, but the really important thing here is the step change we’re going to see in the catalogue available for customers.”
However, Jackson sidestepped a question on whether the long-term plan is for Flutter to own its own exchange by becoming a CFTC-licensed designated contract market. It currently operates as a futures commission merchant, or broker.
FanDuel Predicts expanded its offering in Q2, most notably with player props and customisable combos, which are effectively the prediction market equivalent of parlays.
What’s more, Flutter, which owns the Betfair Exchange in certain international markets, said its market-making capability was “rapidly scaling” and should generate $50m (£37.1m) in revenue in 2026.
Without going in specifics, CFO Rob Coldrake said Q2 volumes on FanDuel Predicts were “significantly up but on quite a small base” and that “really good progress” was being made.
Management also said the company continues to see “limited cannibalisation impact” from prediction markets on its existing customer base in regulated sports betting states where FanDuel Sportsbook operates.
“We continue to see prediction markets as incremental to sports betting and igaming, growing the overall market by capturing new demand” Jackson noted.
All change
Ahead of the earnings call, Flutter announced that announced that Dan Taylor is to succeed Jackson as group CEO of the online giant from 1 October.
Taylor currently heads up the international unit, which achieved more than $9bn (£6.7m) in annual revenue and north of $2.2bn in adjusted EBITDA in 2025, while Jackson steps down after more than nine years in the hot seat.
Jackson’s departure comes after Flutter’s shares have slumped nearly 70% in the previous 12 months. The stock has plunged another 10% to around $95 since the market opened in New York following the release of the results.
Its market cap is, at the time of writing, $16.5bn, compared with above $50bn a year ago, with much of the selloff due to the challenge posed by federally regulated prediction markets like Kalshi, Robinhood and Polymarket US.
On 29 July, London-listed retail trading firm IG Group joined the prediction markets arms race by announcing the acquisition of CFTC-licensed Underdog for up to $1.3bn.
The numbers
As for the Q2 financials, Flutter reported a 3% year-on-year (YoY) increase in revenue to $4.3m, fuelled by “M&A, strong igaming growth and excellent customer engagement during the World Cup.
Sportsbook revenue for the period totalled $2.2bn, which was largely flat at a 1% gain, while igaming increased 9% YoY to $1.9bn.
Looking at the US, revenue fell 6% to $1.6bn. Of this, FanDuel revenue slumped 15% YoY to $1bn, yet igaming revenue increased 14% to $577m.
Management noted an “adverse swing in sports results, which offset the benefit of strong customer engagement in the NBA finals and the FIFA World Cup” as a contributing factor.
Revenue from the operator’s international arm, which includes the UK and Ireland, amounted to $2.6bn, a gain of 10% thanks in part to solid growth in Southern Europe and Africa (SEA).
SEA generated revenue of £896m, up 36% YoY and underpinned by Sisal’s strong performance in Italy as well as benefits from PokerStars customer migrations.
Management said early Q3 trading was “ahead of expectations”, yet lowered guidance for full-year 2026 to $17.9bn in revenue and EBITDA of almost $2.7bn.
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FanDuel Predicts to move away from CME Group in bid for faster product rollout, with management claiming the “slower than planned” H1 is now giving way to “really good progress” on its prediction market product
The post Flutter to migrate all sports and novelty contracts to Crypto.com exchange first appeared on EGR Intel.