Who’s on the Other Side of a FanDuel Prediction Market Contract?

When you place an Order on a FanDuel prediction market, it's matched on an exchange against another market participant with opposite buy or sell interest in the same market; we aren't a house taking you on.

Prediction markets operate as a peer-to-peer matching system of Yes and No Orders. It's peer-to-peer action: each Contract has two available sides, and your Order fills when it meets a match.

How do the two sides of a college football Contract face each other?

Take a college football market framed as a yes-or-no question, something like: will the home team take the conference title game? Yes and No are the two available Positions. Buy Yes if you think it'll happen, or No if you don't.

What does the exchange do in the middle?

The exchange is where Orders from participants on the two sides of a Contract meet and get matched. FanDuel Prediction Markets lists contract that are available on CFTC-regulated derivatives exchanges, like CME Group and CDNA.

Your account is opened with FanDuel Prediction Markets LLC, a registered futures commission merchant and NFA member, which is a joint venture between FanDuel Group and CME Group.

Where does the Contract price come from?

From the market itself. Contract prices range from 1 cent to 99 cents, and the Premium for a Yes or No Position reflects the market's assessment of the probability of the underlying event. Because Orders are matched peer-to-peer with other participants, the price you see is the price at which the two sides are trading.

Volume, shown next to each market, is the total amount of all trades placed in that market. It's a quick read on how much participant interest a market is drawing.

What if FanDuel Sportsbook is available in my state?

It's the same FanDuel app either way. In states where FanDuel Sportsbook operates, you get the full sports betting experience. In other states, eligible customers can access FanDuel Predicts, our prediction market trading experience. When you use FanDuel Predicts, your Contracts trade on an exchange and your Orders are matched against other participants, not booked against us:

• Exchange-traded Contracts: Contracts are traded on CME and other CFTC-registered exchanges.
• Peer-to-peer matching: Your Orders are matched against other participants in the market, not against us.
• Market-set Premiums: The Premium reflects the market's assessment of the event's probability.

What's the risk?

A Position can lose its full Premium. If your prediction is correct, you receive the full payout; if it's wrong, you only lose what you put in, never more, and no additional fees are charged.

Selling a Position early (cashing out) is available only in select markets, so don't count on an exit before the market settles.

Frequently Asked Questions

The prediction markets FAQ goes deeper on sign-up, trading hours, and settlement.

Why do some markets settle early?

Markets track real-world events, so if the event happens earlier than expected, the market settles early.

Who regulates FanDuel prediction markets?

The CFTC regulates the exchanges where Contracts are listed; the exchange section above covers the entities involved, and the Risk Disclosures have the full detail.

Where can I trade?

FanDuel is available in all 50 states to U.S. citizens 18 and older, and markets vary by state. In states where FanDuel Sportsbook operates, you get the sports betting experience. In most other locations, eligible customers can access FanDuel Predicts, our prediction market trading experience.