Fanatics buys regulated exchange in bid to grow prediction markets business

Markets Fanatics buys regulated exchange in bid to grow prediction markets business The deal gives Fanatics control of its own prediction market infrastructure as event-based trading gains traction across sports, finance and crypto. By Helene Braun | Edited by Nikhilesh De Jul 27, 2026, 2:46 p.m. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on (Rob Kim/Getty Images) Summary Show Fanatics will acquire BGC's federally regulated exchange and clearinghouse to launch and settle its own prediction markets. The deal positions Fanatics to compete in the fast-growing prediction market sector alongside Kalshi, Polymarket and other emerging platforms. Fanatics and BGC also plan to develop new market data products that combine prediction market activity with traditional financial market data. American sports company Fanatics is making a major move into prediction markets, a corner of finance that has exploded in popularity over the past year as traders wager on everything from elections to inflation and sports. On Monday, the sports merchandiser announced that it has agreed to acquire Water Street Labs and CX Clearinghouse from BGC Group, giving Fanatics ownership of a federally regulated exchange and clearinghouse which allows it to launch and settle its own prediction market contracts. Financial terms were not disclosed. Through the acquisition, Fanatics will be able to list and clear contracts itself, giving it more control over the products it offers and how quickly it can bring new markets online. Fanatics and BGC also plan to develop new market data products that combine prediction market activity with traditional financial data, the companies said. Prediction markets have become one of the fastest-growing areas of finance with much of that growth being fueled by CFTC-regulated exchange Kalshi and powerhouse Polymarket, which runs its operations on a blockchain. Crypto-native companies have also helped push the category into the mainstream. Coinbase (COIN) partnered with Kalshi to bring prediction markets to its users in 50 states, while Robinhood (HOOD) has begun offering event contracts through the same exchange. Against that backdrop, Fanatics is betting that its large sports audience can help bring prediction markets to an even broader consumer base. The company's Markets platform launched in late 2024 and is available in 23 states and four U.S. territories. Sportsbooks operators are similarly expanding into prediction markets, with DraftKings announcing late last year it would launch its own platform. Prediction Markets Latest Crypto News 1 Cantor is advising crypto bank AMINA on path to potential public listing 10 minutes ago 2 Lido begins moving $16.5 billion in staked ether to cut validator count by a third 47 minutes ago 3 Thailand's SEC alleges Bitkub concealed cyberattack that led to $50 million hack 1 hour ago 4 Nvidia forms 37-member AI security alliance without OpenAI, Anthropic or Google 1 hour ago 5 Securitize builds Wall Street credentials with SEC adviser license as tokenization expands 1 hour ago 6 Crypto is rewriting how Wall Street traders spend their weekends 1 hour ago 7 Bitmine buys more ether as Tom Lee says rising ETH/BTC ratio points to stronger crypto prices 1 hour ago 8 Circle buys nearly 1,000 blockchain patents from IBM 2 hours ago 9 Michael Saylor's Strategy boosted cash reserve to $3.75 billion, repurchased $25 million of STRC 2 hours ago 10 Bitcoin options traders are dropping their hedges going into the Fed meeting 2 hours ago Latest Research Crypto Flows, Share and the Selective Rotation Crypto Flows, Share and the Selective Rotation Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows. By CoinDesk Research Jul 22, 2026 Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows. Why it matters : Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows. View Full Report More From Markets Crypto is rewriting how Wall Street traders spend their weekends Michael Saylor's Strategy boosted cash reserve to $3.75 billion, repurchased $25 million of STRC Bitcoin options traders are dropping their hedges going into the Fed meeting