CME Group, the Chicago-based derivatives exchange, is moving into sports betting with plans to launch futures contracts tied to sports performance indexes. The first cash-settled contracts are expected this summer, subject to regulatory approval. The move targets the $650 billion global sports industry.
Partnership with Futuresports
On July 29, CME Group announced a long-term partnership with Futuresports, a company that creates data-driven sports indexes. The collaboration will develop futures products based on those indexes, allowing investors to bet on the performance of athletes, teams, or leagues without owning the underlying assets. The contracts will be cash-settled, meaning no physical delivery of players or teams.
How the Contracts Would Work
The futures will track indexes that measure sports performance — things like points scored, win-loss records, or other statistical metrics. Investors will be able to take long or short positions, essentially betting on whether performance will rise or fall. CME Group hasn't specified which sports or indexes will be used first, but the company says the products are designed for both institutional and retail investors.
Regulatory Hurdles
The launch depends on review by U.S. regulators. CME Group didn't name which agencies will oversee the contracts, but commodity futures typically fall under the Commodity Futures Trading Commission. The company said it expects the first contracts to trade this summer, but the timeline could shift depending on the regulatory process.
The sports industry is worth an estimated $650 billion globally, according to CME Group. That includes everything from ticket sales and media rights to merchandise and betting. The exchange sees the futures as a way to tap into that market with a regulated, exchange-traded product.
CME Group already offers futures on everything from corn and crude oil to Bitcoin and interest rates. Sports performance indexes would be a new frontier. The company hasn't said whether it plans to list the contracts on its main exchange or a separate platform.
The contracts are expected this summer, but the exact date depends on regulators.
