Fanatics Acquires BGC's CFTC-Registered Exchange and Clearinghouse
Fanatics Betting and Gaming announced that it will purchase Water Street Labs, a Commodity Futures Trading Commission‑registered designated contract market, and CX Clearinghouse, a CFTC‑registered derivatives clearing organization, from brokerage firm BGC Group. Financial terms were not disclosed. The acquisition gives Fanatics direct ownership of the exchange and clearing infrastructure needed to list and settle prediction‑market contracts on its Fanatics Markets platform, ending its reliance on third‑party providers.
BGC will stay on as a strategic partner, supplying liquidity, market data, and collaborating on new data products that combine prediction‑market sentiment with traditional financial information. Fanatics Markets, launched in December 2025, is currently offered in 23 U.S. states and four territories, trading contracts on sports, cultural, financial and political events. The move mirrors earlier industry actions by DraftKings and FanDuel, which also secured CFTC‑regulated infrastructure to expand into prediction markets.
Industry analysts note that prediction‑market trading volume has surged, with platforms such as Kalshi reporting billions in monthly turnover, underscoring the growing importance of regulated platforms in the sports‑betting and fintech landscape.
Entities: BGC Group · CX Clearinghouse · Fanatics Betting and Gaming · Matthew King · Water Street Labs
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] Fanatics agreed to acquire CX Clearinghouse, a CFTC‑registered derivatives clearing organization, from BGC Group.
- [● 2 SOURCES] Fanatics Markets is available in 23 U.S. states and four territories.
- [● 3 SOURCES] Fanatics agreed to acquire Water Street Labs, a CFTC‑registered designated contract market, from BGC Group.
- [○ 1 SOURCE] Prediction‑market trading volume reached $48 billion in July.
- [○ 1 SOURCE] Rivals DraftKings and FanDuel have also secured CFTC‑regulated infrastructure to reach fans in states where mobile sports betting is banned.
- [● 3 SOURCES] The financial terms of the acquisition were not disclosed.
- [● 3 SOURCES] Owning the exchange and clearinghouse will allow Fanatics to list and clear prediction‑market contracts directly on its platform.
- [● 2 SOURCES] BGC will remain a strategic partner, providing liquidity, market data and institutional infrastructure.
- [○ 1 SOURCE] DraftKings and FanDuel have previously secured CFTC‑regulated infrastructure to expand into prediction markets. (all)
- [● 3 SOURCES] Water Street Labs is a CFTC‑registered designated contract market. (all)
- [● 2 SOURCES] Fanatics Markets launched in December 2025 and is available in 23 US states and four territories. (all)
- [● 2 SOURCES] BGC will remain a strategic partner, providing liquidity, market data, and co‑developing data products. (all)