Fanatics Acquires Exchange for Its Prediction Markets Business

United States.- 28 July 2026 www.zonadeazar.com Fanatics has agreed to acquire two regulated assets from BGC Group as it develops its own federally supervised prediction-market infrastructure in the United States.

The transaction includes Water Street Labs, a registered designated contract market, and CX Clearinghouse, a derivatives clearing organisation registered with the Commodity Futures Trading Commission. Financial terms were not disclosed.

News Details

The acquisition will allow Fanatics Markets to operate its own exchange and clearinghouse rather than relying exclusively on infrastructure supplied by external companies.

Owning these assets will give Fanatics the ability to list, trade and clear contracts linked to sporting, financial, cultural and entertainment events directly within the US federal regulatory framework.

Fanatics Markets launched in December 2025 through a partnership with Crypto.com | Derivatives North America. The platform offers contracts covering sporting results, player milestones, championship outcomes, elections and cultural events.

Industry Context

Vertical integration will give Fanatics greater control over product creation, liquidity, trade clearing, risk management and the customer experience.

The company will also be able to use its customer base across sports betting, merchandise, collectibles and loyalty services to support the expansion of Fanatics Markets.

The platform is currently available across 23 US states and four territories and includes features such as FanCash, Fanatics ONE, combination markets, data visualisations and exposure-management tools.

The transaction comes as sports prediction markets continue to face disputes with state regulators, some of which consider the contracts equivalent to gambling products requiring local licences.

Statements

Fanatics Betting and Gaming CEO Matt King said BGC’s experience in regulated exchanges, clearinghouses, trading technology and institutional infrastructure would support faster growth across the prediction-market sector.

He highlighted the opportunity to combine that financial-market expertise with Fanatics’ understanding of sports fans and consumer engagement to serve both retail and institutional participants.

BGC co-CEO John Abularrage said the transaction represented an important strategic step in expanding the company’s data and analytics capabilities while combining its institutional expertise with Fanatics’ consumer reach.

Next Steps or Impact

Fanatics and BGC will continue working together after the acquisition closes. BGC will contribute institutional infrastructure, liquidity, trading expertise and analytics to help connect retail-facing prediction markets with professional financial participants.

The companies will also develop data products combining sentiment generated by prediction markets with information from traditional financial markets.

The acquisition will position Fanatics as a vertically integrated prediction-market operator with direct control over its consumer platform, regulated exchange and contract-clearing operations.

Edited by: @_fonta