00:00So what do we know about this new prediction market product?
00:02So what's really interesting about it is where it's going to be offered.
00:06FanDuel is going to have these new prediction markets, these contracts that are going to be on a separate app,
00:13and they're going to be in states where sports betting is illegal.
00:17So any time that a state is gaining the sports betting and it's made legal,
00:24they will then take away those contracts.
00:26And why they are doing this is twofold.
00:29Number one, they're still very much focused on sports betting as their main business line.
00:35They want their users to access sports betting when it is made legal in the states that they can make some progress doing that.
00:43Now, in the states where it is illegal, they want to tap into a new marketplace.
00:48These are users that they wouldn't be able to access currently.
00:51So in order to do so, they're offering these event contracts that are CFTC regulated.
00:59And they see this as a new opportunity.
01:02But also, it's a defensive move.
01:04You mentioned Polymarket and Kalshi.
01:06They're accessing a customer base that might be some of the same users as FanDuel.
01:11And so now, FanDuel and CME, the derivatives exchange, is offering this new app.
01:19And that app that's launching in December that they announced yesterday is going to be expanding upon the sports betting offering that FanDuel currently is known for and is hoping to still expand.
01:32I'm glad you said that this move is clearly defensive because you look at how Flutter shares are trading right now, down about 13%, 12.7% lower.
01:40So is this a concern that it's doing this because it has to and it's only a matter of time before it kind of gives up that ground to those prediction markets?
01:48I think that they're looking at this as a new customer base, potentially.
01:54Again, those customers that they can't currently access because those customers are not able to engage in their sports betting products.
02:04Now, the event contracts is going to also, for CME, that is a move where they are hoping that customers that access this FanDuel app
02:14are going to now be able to potentially look into CME products that are tied to the market.
02:21And a headline just crossed, the CBO, the Chicago Board of Options Exchange, will be launching a prediction market within months as well, but avoid sports.
02:28Yes.
02:28So a lot of activity here in this part of the business.
02:31Talk a little bit about what's going on here.
02:33So CBO's move is one that is tied to the economy and markets specifically.
02:39They're not interested right now in going into sports.
02:42This is a very interesting move for them.
02:44Because they are not looking also to partner like we've seen with FanDuel and CME.
02:50You see Polymarket and ICE.
02:53That's the New York Stock Exchange's parent.
02:55So they're trying to do this on their own.
02:57And again, they're looking to products that might be very similar to the options products and other products they already have.
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