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FinanceFanatics to acquire BGC Group assets to launch prediction market exchange
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Fanatics, a global sports platform, announced on July 27, 2026, that it will acquire a designated contract market and a derivatives clearing organization from brokerage BGC Group to launch its own prediction market exchange. Specifically, Fanatics will buy Commodity Futures Trading Commission-registered Water Street Labs, LLC and CX Clearinghouse L.P. from BGC. Financial terms were not disclosed. Fanatics Markets, launched in 2025 as the prediction markets subsidiary, allows users to trade on sports outcomes such as game winners, player milestones, and tournament champions. The platform is currently accessible in 23 U.S. states, including California, Texas, and Florida. The deal aims to expand Fanatics' prediction market offerings. The article notes that prediction market startups like Kalshi have clashed with state regulators over gambling laws, with critics arguing such platforms constitute illegal gambling. Matt King, CEO of Fanatics Betting and Gaming, stated the acquisition combines institutional foundation with Fanatics' fan engagement expertise to accelerate prediction market growth.
Source report
Reuters | Mon, July 27, 2026 at 6:09 AM PDT | 1 min read
Fanatics, a global sports platform, announced on Monday that it will acquire a designated contract market and a derivatives clearing organization from brokerage BGC Group to launch its own prediction market exchange.
Key Details
- Assets Acquired: Fanatics will purchase Water Street Labs, LLC (a Commodity Futures Trading Commission-registered contract market) and CX Clearinghouse L.P. from BGC.
- Financial Terms: The terms of the deal were not disclosed.
- Fanatics Markets: Launched in 2025 as the prediction markets subsidiary of Fanatics, the platform allows users to trade on sports outcomes, including game winners, player milestones, and tournament champions.
- Current Reach: The platform is accessible in 23 U.S. states, including California, Texas, and Florida. The acquisition is expected to help Fanatics expand its prediction market offerings.
Industry Context
Prediction market startups such as Kalshi have faced conflicts with state regulators over gambling laws concerning sports contracts. Critics argue that such platforms amount to illegal gambling operations.
Executive Comment
"By combining that institutional foundation with Fanatics' unmatched understanding of fans and consumer engagement, we have a unique opportunity to accelerate the growth of prediction markets and deliver a best-in-class experience for both retail and institutional participants."
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— Matt King, CEO of Fanatics Betting and Gaming
Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini Ganguli
Source
Yahoo FinanceWestern
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Fanatics to Acquire BGC Group Assets to Launch Prediction Market Exchange