Fanatics acquires CFTC-registered exchange and clearinghouse from BGC to list and settle its own prediction market contracts.
DeFi & Yields ·
Fanatics has agreed to acquire Water Street Labs, a CFTC-registered exchange, and CX Clearinghouse from BGC Group, enabling the sports platform to list and settle event contracts directly through its Fanatics Markets subsidiary rather than depend on external infrastructure. The purchase grants the company operational control over both the trading venue and clearing mechanisms needed to function as a self-contained prediction markets operator.
The acquisition aligns Fanatics with moves by competing sports-betting operators DraftKings and FanDuel, which have similarly sought CFTC oversight to reach bettors in states where traditional mobile sportsbooks face restrictions. DraftKings acquired Railbird, while FanDuel partnered with CME Group, both pursuing a broader industry pattern of owning rather than leasing regulatory infrastructure. The category has drawn institutional capital—including a $1.6 billion investment from Intercontinental Exchange in Polymarket—and Kalshi recorded $33 billion in trading volume during June alone, with July volumes across major platforms reaching $48 billion. Analysts forecast prediction-market trading volumes could hit $1 trillion by 2030.
No purchase terms were disclosed. The companies also plan joint development of market-data products combining prediction-market sentiment with traditional financial information, though specifics on the partnership's scope and timeline remain undisclosed.