Share 
Gaming Edge’s TL;DR
- Fanatics said it will launch its own prediction market exchange.
- The move could expand the company’s footprint in a closely watched part of the US gambling and trading market.
Fanatics said it will acquire two BGC Group assets to launch its own prediction market exchange.
The deal includes Water Street Labs, LLC, a Commodity Futures Trading Commission-registered designated contract market, and CX Clearinghouse L.P., a derivatives clearing organization.
Financial terms were not disclosed.
Fanatics said the acquisition is meant to strengthen its prediction market infrastructure. Its Fanatics Markets platform, launched in 2025, already allows users to trade on sports-related outcomes such as game winners, player milestones, and tournament champions. The platform is currently accessible in 23 US states, including California, Texas, and Florida.
Building a foundation
Matt King, CEO of Fanatics Betting and Gaming, said the assets give the company an institutional base to build on.
He said combining that foundation with Fanatics’ consumer reach creates an opportunity to grow prediction markets for both retail and institutional participants.
The announcement lands as prediction markets remain under scrutiny from regulators and critics. Startups such as Kalshi have faced clashes with state regulators over whether sports-event contracts amount to illegal gambling under state law.
That broader debate matters for companies trying to expand in the category, even when they are operating through federally regulated market structures.
Based on reporting by Pritam Biswas for Reuters via The Star.
