Fanatics Buys CFTC-Registered Exchange in Prediction Markets Land Grab
Fanatics is expanding into prediction markets by acquiring Water Street Labs, a CFTC-registered exchange, and CX Clearinghouse, a derivatives clearing organization, from BGC Group. The deal lets Fanatics list and settle event contracts directly on Fanatics Markets instead of using third-party infrastructure. This follows a broader rush by sports-betting companies, including DraftKings and FanDuel, to build CFTC-regulated event-contract businesses, especially in states where mobile sportsbooks are restricted. The sector is growing rapidly, led by Kalshi and Polymarket, with total prediction-market trading volumes surging sharply in recent months. Major financial players are also investing, including ICE’s $1.6 billion backing of Polymarket. Fanatics and BGC will additionally collaborate on market-data products combining prediction-market sentiment with traditional financial data.
