Flutter Entertainment’s (NYSE: FLUT) earnings call for the second quarter provided a wealth of notable announcements yesterday, but a significant strategic shift was particularly prominent: FanDuel is transitioning its sports and novelty prediction markets from CME Group (NASDAQ: CME) to Crypto.com.

During a conference call with analysts on Wednesday (August 5), Flutter's departing CEO Peter Jackson stated that FanDuel Predicts — the platform for the sportsbook’s prediction markets — “in collaboration with CME,” FanDuel is relocating its novelty and sports event contracts to Crypto.com.

“This new exchange arrangement will ensure we can deliver new products at pace ahead of the NFL season start,” said Jackson. “Our One App offering is also enabling us to leverage FanDuel’s nationwide brand equity, driving both accelerated penetration and marketing efficiencies.”

In June, FanDuel revealed a partnership in prediction markets with OG Prediction Markets from Crypto.com.

The agreement primarily focuses on contracts for sports and entertainment events along with "combos," a term used in the prediction market field to refer to parlays. FanDuel Predicts will continue to offer financial derivatives correlated with significant equity indexes through CME.

Issues on the Horizon?

Almost a year ago, CME and FanDuel introduced their collaboration in the prediction market, prioritizing economic data and finance.

As FanDuel Predicts branched into contracts related to sports events, its most popular derivatives, analysts began to raise concerns about the sustainability of its partnership with CME in the long run. The transition to Crypto.com has now led to speculation regarding potential friction between FanDuel and the exchange operator.

There could be some truth to those rumors. During CME's earnings conference call for the second quarter last month, CEO Terry Duffy categorized contracts for sports events as "gambling," suggesting that the Supreme Court might ultimately determine the future of those derivatives.

About a week after, CME disclosed a collaboration with FutureSports, which could become a competitor to the sports contracts provided by yes/no exchanges. FutureSports develops indexes associated with the performance of athletes and teams. CME intends to introduce futures and options contracts based on these metrics.

Positive Aspects in Market Making for FanDuel Predicts

Flutter experienced a challenging second quarter, revising its earnings and sales forecasts for 2026 downward, resulting in a decline of its already struggling stock.

Nonetheless, there were a few positive aspects, notably remarks on the gaming company's capability to utilize its existing sports trading knowledge for revenue enhancement in yes/no market making.

“We believe we’re also uniquely positioned to provide liquidity for combination markets across different prediction market platforms with a market-making offering that can scale rapidly and at low incremental investment,” said Jackson on the call.

“It is very early days, but we would expect to generate approximately $50 million of revenue from market making this year, demonstrating both the good progress made so far and the potential opportunity,” he added.