FanDuel’s blockbuster announcement Wednesday that it is partnering with derivatives marketplace CME to launch a prediction market brings more questions than answers. How will state regulators react? Will this make negotiating with California’s tribes more difficult?

The popular sports betting app will soon host event-based contracts linked to oil and gas prices, gold, the S&P 500 and more.

FanDuel will get into the prediction markets business later this year, though there is no mention of sports just yet.

FanDuel ( NYSE: FLUT) has entered a strategic partnership with CME Group ( CME) to create a platform that allows retail users to bet on the outcomes of financial market events. The joint venture is set up to operate as a non-clearing futures commission merchant. Pending regulatory review, the launch could be later in 2025.

The two online sportsbooks got the state's two untethered licenses, meaning they don't need a land-based partner.

FanDuel did not take long to announce its Missouri sports betting partner after missing out on an untethered license.

The Missouri Gaming Commission heard presentations Wednesday from DraftKings, FanDuel and Circa Sports, three companies competing for two mobile sports betting licenses available in the state.

The move from the Missouri Gaming Commission to pass up FanDuel for a sports betting license was seen as a major surprise. DraftKings and Circa Sports were selected instead.

Shares of DraftKings Inc (NASDAQ:DKNG) and Flutter Entertainment (NYSE:FLUT) are trading lower Tuesday after Robinhood Markets Inc (NASDAQ:HOOD) announced the launch of pro and college football prediction markets.