Fanatics, a global sports platform, will acquire a designated contract market and a derivatives clearing organization from brokerage BGC Group to launch its own prediction market exchange.
Prediction Market Expansion
The acquisition includes Commodity Futures Trading Commission-registered contract market Water Street Labs, LLC and CX Clearinghouse L.P. from BGC. Fanatics Markets, launched in 2025, allows users to trade on sports outcomes such as game winners, player milestones, and tournament champions.
The platform is currently accessible in 23 U.S. states, including California, Texas, and Florida. The deal will help Fanatics expand its prediction market offerings. However, prediction market startups have clashed with state regulators over gambling laws concerning sports contracts.
According to Matt King, CEO of Fanatics Betting and Gaming, the combination of institutional foundation and Fanatics’ understanding of fans and consumer engagement will accelerate the growth of prediction markets and deliver a best-in-class experience for participants.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
