Fanatics has acquired Commodity Futures Trading Commission (CFTC)-registered Designated Contract Market (DCM) Water Street Labs and Derivatives Clearing Organization (DCO) CX Clearinghouse from BGC Group to launch its own federally regulated prediction market offering.
“BGC are experts in the financial services industry and, like Fanatics, have built their business on a foundation of cutting-edge technology, innovation and exceptional talent,” Fanatics Betting and Gaming CEO Matt King said.
“Their expertise in building and operating regulated exchanges, clearinghouses, trading technology and institutional market infrastructure makes them an ideal partner. 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.”
At the time of writing, financial details of the transaction between Fanatics and BGC have yet to be released, but the two entities will also partner to enable the development of new client data products which combine prediction market sentiment with traditional financial market data.
BGC Co-CEO John Abularrage also spoke on the transaction, having said, “This represents an important strategic step for BGC to expand our data and analytics capabilities while combining our institutional expertise with Fanatics' consumer reach.
“No one knows the sports fan better than Fanatics, and we believe the acquisition of BGC’s DCM and DCO will supercharge Fanatics Markets. Together, we intend to broaden institutional adoption of prediction markets and create innovative data products that unlock new insights for market participants.”
The operator will look to expand its offering on Fanatics Markets with the “freedom to directly list and clear prediction markets across an expanding opportunity set.”
On June 4, Fanatics launched its new Fanatics One loyalty program for users of its prediction markets platform, allowing bettors to earn up to 10% in FanCash on every trade which can be used for merchandise, tickets, collectibles and future wagers.
Fanatics One was originally launched during 2025 to help connect the operator’s broader sports ecosystem, while additional launches were also highlighted by Fanatics as part of the release.
Fanatics Sportsbook formed a partnership with IC360 to launch a new Bad Actor Program on June 25, which allows operators to restrict wagering by those who threaten athletes and coaches
