FanDuel Predicts, the prediction market arm of Flutter Entertainment, has partnered with Crypto.com and OG Prediction Markets, expanding its sports and entertainment contracts and combination event contracts.
Key Takeaways
- FanDuel launched its prediction markets product, FanDuel Predicts, in January.
- Crypto.com launched its prediction markets trading platform, OG, in February.
- FanDuel Predicts’ partnership with Crypto.com and OG will enable customers to access a wider range of contracts.
Tuesday’s prediction markets news revealed a newly formed thrupple between FanDuel Predicts, Crypto.com, and OG Prediction Markets.
“FanDuel Predicts was built to deliver a best-in-class prediction market experience to our customers,” said James Cooper, senior vice president of flywheel and new ventures at FanDuel. “These additional product sets give our customers more choices by expanding the breadth of sports and entertainment contracts on our platform.”
FanDuel Predicts launched in all 50 states at the beginning of this year. It only allows sporting event contracts in those states where FanDuel has a sports betting presence. Other states allow trades on contracts relating to political, economic, and entertainment events.
Prior to FanDuel Predicts’ launch, FanDuel hooked up with CME for a joint venture, offering financial prediction markets to its customers.
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Enter Crypto.com
Crypto.com, which initially specialized in cryptocurrency trading, waded into the prediction markets business after acquiring Nadex, a federally regulated business. In February, Crypto.com launched OG, a prediction markets trading platform.
When OG launched, the company spoke about OG’s potential in the sports trading world.
“Crypto.com was the first company to offer federally licensed sports prediction contracts in the United States, so launching OG is very fitting,” said Nick Lundgren, then Crypto’s Chief Legal Officer, now OG's CEO. “We have tremendous momentum and expertise to establish OG as a market leader for consumers in this deca-billion dollar industry….”
With its new partnership with FanDuel Predicts, OG gets to prove that thesis.
The more tangled, the harder to unwind
Prediction markets – especially those offering sporting event contracts – are still on fragile legal ground. While prediction market operators are federally regulated by the Commodity Futures Trading Commission, specific rules and regulations are few and far between. Products are self-certified by the operators and are not necessarily blessed by regulators. Meanwhile, many states argue that prediction market sporting contracts are in violation of state gambling laws.
There are numerous lawsuits seeking legal clarity in the prediction market space. Operators, however, aren’t waiting for the courts to decide. Instead, they continue to plow ahead, making deals and forging partnerships.
As the legal system attempts to catch up, the growing number of contractual relationships and joint ventures may make it harder for courts to undo what has already been done.
