Fanatics Acquires BGC's Prediction Market Assets

Financial technology company Fanatics has expanded its presence in the prediction markets space by acquiring a Designated Contract Market and Derivatives Clearing Organization from BGC Group. This move enables Fanatics to create an avenue for growth of its Event Contract Platform and expand its federally licensed Prediction Market.

The acquisition includes Water Street Labs and CX Clearing House, both of which have the necessary licenses and infrastructure to operate as a prediction market platform. Prior to this announcement, Fanatics had operated its prediction market under a partnership agreement with Crypto.com since last December.

Fanatics now operates its Fanatics Markets platform in 23 states and four US Territories. The company has stated that owning its own exchange and clearinghouse will allow it to directly list and clear prediction markets across an expanding opportunity set, reaching its highly engaged customer base.