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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 announcement comes amid regulatory clashes between prediction market startups like Kalshi and state regulators over gambling laws. Matt King, CEO of Fanatics Betting and Gaming, stated the combination of institutional foundation and Fanatics' consumer engagement expertise will accelerate prediction market growth.
Source report
Reuters | Mon, July 27, 2026 at 6:09 AM PDT | 1 min read
- BGC +1.53%
- KLSH.PVT
July 27 (Reuters) — 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
- Fanatics will purchase Water Street Labs, LLC — a Commodity Futures Trading Commission-registered contract market — and CX Clearinghouse L.P. from BGC.
- Financial terms of the deal were not disclosed.
- Fanatics Markets, launched in 2025 as the prediction markets subsidiary of Fanatics, enables users to trade on sports outcomes including game winners, player milestones, and tournament champions.
- The platform is currently available in 23 U.S. states, including California, Texas, and Florida. The acquisition is expected to support further expansion of Fanatics' prediction market offerings.
Industry Context
Prediction market startups such as Kalshi have faced conflicts with state regulators over gambling laws related to 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," said 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