ProphetX and Pikkit have formed a new strategic collaboration to launch Commodity Futures Trading Commission (CFTC)-regulated prediction markets for Pikkit users, allowing for trades on real-world sports outcomes such as game results and player props.
"Pikkit's community is made up of the most engaged traders in the country — people who track every result and know exactly where their edge comes from. That's exactly who prediction markets were built for,” ProphetX Co-Founder and CCO Jake Benzaquen said.
“Partnering with Pikkit gives that community direct access to a federal exchange where the crowd sets the price and every participant competes on a level playing field, instead of against the house."
ProphetX currently serves as a CFTC-designated contract market and derivatives clearing organization, while Pikkit is a tracking and social analytics platform used to monitor and compare wagers across 30 different sports betting and daily fantasy sites.
Under the new agreement, contracts related to the NFL, NBA and international soccer will be offered to Pikkit users through ProphetX's CFTC-regulated exchange, with additional contracts set to be introduced on a “rolling basis.”
Pikkit Co-Founder and CEO Pranav Tadikonda also spoke on the collaboration, having said, "Our users are already doing the work — tracking their trades and comparing venues to find the best price. Prediction markets are the logical next step for a community this data-driven.
“ProphetX gives us a regulated, exchange-based way to put that analysis to work, and we're excited to bring it to the traders who've made Pikkit their home base."
At the end of July, UK trading provider IG Group agreed to acquire Underdog Fantasy in a transaction valued at approximately $1.3bn, helping the organization “accelerate” its entry into the US prediction markets scene.
The deal to acquire Underdog includes an upfront consideration of approximately $1.1bn – based on enterprise value – and an earnout of nearly $200m for the operator’s shareholders.
IG Group could also pay out an additional $850m under a management incentive plan which is based on achieving adjusted EBITDA of $400m in 2028 and $700m in 2029.
DraftKings launched its proprietary prediction markets exchange DKeX on June 26, as annualized consumer volume on its DraftKings Predictions product reaches approximately $3.4bn
