Plus500 Selected to Clear Trades for New FanDuel Prediction Platform
Plus500 has secured a contract to serve as the exclusive clearing partner for a new prediction market platform. This venture involves FanDuel and the CME Group. The agreement positions the fintech group as the backbone for FanDuel’s entry into event-based trading.
Operational Mechanics and Infrastructure
The agreement assigns specific technical roles to each party. Plus500 will provide brokerage-execution and clearing services. FanDuel operates as a non-clearing Futures Commission Merchant in this setup.
It requires an external partner to handle the financial infrastructure. Plus500 will deploy its institutional-grade technology to manage these duties.
The system grants customers secure access to the market. It also handles risk management and final settlement capabilities.
This setup allows FanDuel to focus on the user interface while Plus500 manages the trade processing.
This division of labor ensures that the platform meets the rigorous standards required for financial trading products.
Strategic Expansion for Plus500
This deal represents a major expansion for Plus500 into the business-to-business sector. It moves the company beyond its traditional consumer trading base.
The partnership validates the company’s proprietary technology stack for institutional use. David Zruia, the CEO of Plus500, described the partnership as a “historic milestone.”
“Being chosen to clear for this groundbreaking initiative is a historic milestone for Plus500,” Zruia said. “It reflects our capabilities as an accredited, trusted market infrastructure provider, built on proprietary technology, regulatory expertise, and a focus on institutional collaboration.”
“It also demonstrates the superiority of our operational processes and status as a global multi-asset fintech group on the international stage. We are proud to work with the CME and FanDuel to broaden global market access for millions of new customers.”
The Launch of “FanDuel Predicts”
FanDuel plans to launch the “FanDuel Predicts” application in December 2025. This application targets states where online sports betting remains illegal.
Key markets include California and Texas. The platform will offer contracts on NFL, NBA, MLB, and NHL outcomes. It creates a channel to acquire users in restricted jurisdictions before full legalization occurs.
This move responds to aggressive plays by competitors like Kalshi. Kalshi recently won court battles to offer domestic election and sports contracts.
Polymarket also re-entered the conversation, creating market pressure. Peter Jackson, CEO of Flutter, noted that the company would not sit on the sidelines while others seized the opportunity.
The launch follows a “testing the waters” period where the companies focused only on economic data.
Regulatory Shifts and Industry Realignment
The pivot to prediction markets required FanDuel to alter its industry alliances. The operator left the American Gaming Association recently.
The AGA opposes prediction markets and views them as insufficiently regulated. This stance conflicted with FanDuel’s new strategic direction.
FanDuel also surrendered its license in Nevada. Regulators there viewed the new product lines as incompatible with state laws. The company chose to pursue the federal prediction market strategy over retaining access to Nevada.
The company must also navigate complex tribal sovereignty issues. The service will use geofencing technology to block access on tribal lands in California. This aims to prevent conflict with powerful tribal gaming operators.
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