Fanatics buys regulated exchange in bid to grow prediction markets business
CoinDesk 2026-07-27 14:46:10
Context: American sports company Fanatics has agreed to acquire a federally regulated exchange and clearinghouse from BGC Group, positioning itself to launch and settle its own prediction market contracts. This move enables Fanatics to compete in the rapidly growing prediction market sector, which has seen significant growth over the past year with traders wagering on various events. The acquisition will also allow Fanatics to develop new market data products combining prediction market activity with traditional financial market data.
Key Facts
- Fanatics will acquire Water Street Labs and CX Clearinghouse from BGC Group, giving it ownership of a federally regulated exchange and clearinghouse to launch and settle its own prediction market contracts.
- The acquisition will enable Fanatics to list and clear contracts itself, providing more control over the products it offers and the speed at which it can bring new markets online.
- Fanatics and BGC plan to develop new market data products that combine prediction market activity with traditional financial market data.
- The prediction market sector has seen significant growth, fueled by CFTC-regulated exchange Kalshi and powerhouse Polymarket, which operates on a blockchain.
- Fanatics' Markets platform, launched in late 2024, is currently available in 23 states and four U.S. territories, and the company aims to leverage its large sports audience to bring prediction markets to a broader consumer base.