DraftKings and FanDuel Eye Parlay-Style Prediction Markets Ahead of Super Bowl LX
DraftKings and FanDuel could have parlay-style products available for their new prediction markets just days before Super Bowl LX, after their derivatives exchange partner, CME Group, submitted a new product for certification to the Commodity Futures Trading Commission on Jan. 27.
The filing highlights CME’s push to expand event-based contracts at a moment when sportsbooks and prediction market platforms are converging around the most lucrative betting event of the year.
The accompanying letter mentioned the launch of “Event Contract Swaps on Pro Football Championship Combos.” It also referenced the introduction of event contracts for international hockey competitions and Olympic events.
Super Bowl Stakes Drive Urgency
Securing approval for parlay-style products ahead of the Super Bowl is particularly significant for CME Group. It’s the biggest single sporting event for sportsbooks every year. Citizens Financial Group estimates the total legal betting handle will be $1.5 billion this time around.
Prediction sites are already positioning themselves to attract new users as the big game fast approaches. Webull, for example, has rolled out $0 commission on all Super Bowl-related trades.
Parlays are central to that strategy. They remain one of the most popular bet types among U.S. bettors and generate significantly higher margins for operators than single-event wagers.
New Jersey is one of the few states to break down the number of parlays placed. In December, they accounted for 65% of total wagers in the state. New Jersey operators had a 19.2% win rate from parlays in December, compared to 5.2% for non-parlay football wagers.
Most of DraftKings and FanDuel’s competitors in the space already have their own parlay-style products. Kalshi fully launched custom combination contracts in December, while Robinhood and Crypto.com followed earlier this month.
CME Expands Event Contracts Beyond Football
In addition to football, CME Group’s filing also refers to the introduction of event contracts tied to international hockey competitions and the Winter Olympics, which begin on Feb. 6. One featured event is a tournament among top ice hockey nations featuring professional players.
Finally, CME Group also wants to go live with Grammy Awards contracts for categories such as “Album of the Year” and “Best New Artist.” The 67th rendition of the music awards show is scheduled for Feb. 1. CME Group intends to launch these products on Jan. 29.
In its request, the CME Group requested “confidential treatment” from the CFTC for its application. A supplemental document states that the information it provides is confidential and that disclosures could harm CME competitively.
Late Entrants to Prediction Markets
FanDuel partnered with CME Group in August before starting the rollout of FanDuel Predicts in December. Piper Sandler analysts estimated that CME could generate over $300 million from its joint venture if FanDuel catches up with Kalshi in market share.
This is a tall order, as Kalshi has already done more than $2 billion in weekly trading volume, giving it a significant early liquidity advantage.
CME is also the partner of DraftKings Predictions, which went live in December as well. Notably, it doesn’t offer sports prediction markets in states where it already has a functioning sportsbook.
Fanatics was the first major sportsbook to enter prediction markets, launching on Dec. 3 through a partnership with Crypto.com.
Meanwhile, DFS operators Underdog Sports and Prize Picks have also entered the segment, underscoring that traditional operators are looking to make up ground on Kalshi and other prediction market platforms.
With the Super Bowl approaching, DraftKings and FanDuel will be looking to leverage their established names and parlays to close the gap with Kalshi.
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