Sweepstakes sportsbooks pivot to regulated prediction markets

Several sweepstakes-based sportsbooks are transitioning toward federally regulated prediction markets in response to increasing state-level regulatory pressure on the sweepstakes gaming model.

Fliff has filed for registration as a Futures Commission Merchant (FCM) and a swap firm with the National Futures Association (NFA). This move would allow the company to act as an intermediary for contracts on Commodity Futures Trading Commission (CFTC)-regulated exchanges. Other companies, including Onyx Odds and Rebet, have also filed or have pending applications for FCM registration.

ProphetX, which has already received Designated Contract Market (DCM) approval, has partnered with Pikkit to integrate its exchange into the Pikkit platform. This integration allows users to trade CFTC-regulated derivatives linked to sports outcomes, such as game results and player props, within a two-sided marketplace where prices are determined by market participants rather than bookmakers.