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[SITUATION] · [ACTIVE]
2 clusters · 12 sources · 3 days · First seen · Last updated
Categories: BUSINESS
Fanatics expands into CFTC-regulated prediction markets
Entities: Polymarket · CX Clearinghouse · Water Street Labs · Commodity Futures Trading Commission · BGC Group
Overview
In late July 2026, Fanatics Betting and Gaming announced the purchase of Water Street Labs, a CFTC‑registered designated contract market, and CX Clearinghouse, a CFTC‑registered derivatives clearing organization, from BGC Group. The deal 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 external providers while retaining BGC as a strategic partner for liquidity and data.
Two days later, Fanatics framed the acquisition as part of a broader push into regulated prediction markets, contrasting its approach with existing platforms such as Kalshi and Polymarket, which regulators have criticized for lacking responsible‑gaming safeguards. A concurrent Wisconsin federal court ruling rejected a CFTC request for an injunction against state lawsuits targeting those platforms, highlighting state authority over sports‑related event contracts. Together, the announcements underscore Fanatics’ strategy to build a compliant, CFTC‑regulated prediction‑market offering amid heightened regulatory scrutiny of the sector.
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Fanatics acquired a CFTC‑registered exchange to expand its prediction‑market offerings. (Tekedia report)
- [○ 1 SOURCE] Anthony D’Angelo of Fanatics criticized Kalshi and Polymarket as unlicensed gambling platforms. (Fanatics panel at NCSL Legislative Summit)
- [○ 1 SOURCE] A federal judge in Wisconsin rejected the CFTC’s motion for a preliminary injunction against the state in a case involving Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase. (Court documents)
- [○ 1 SOURCE] Judge William Griesbach indicated that Wisconsin’s gambling statutes could apply to sports‑related event contracts. (Judge’s remarks in court opinion)
- [○ 1 SOURCE] Kalshi settled with the Nevada Gaming Control Board to ban its sports prediction market in Nevada. (Court filing summary)
- [○ 1 SOURCE] The CFTC filed a lawsuit against Wisconsin in April after the state sued Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase. (CFTC filing)
Timeline
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1 day ago
[BUSINESS] 9 sourcesFanatics Expands into CFTC-Registered Prediction Market Amid Regulatory Scrutiny of Kalshi and PolymarketFanatics bought a CFTC‑registered exchange to launch a regulated prediction market, while regulators criticize Kalshi and Polymarket as unlicensed gambling and a Wisconsin court upheld state authority over such
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4 days ago
[BUSINESS] 3 sourcesFanatics Acquires BGC's CFTC-Registered Exchange and ClearinghouseFanatics will buy BGC's Water Street Labs exchange and CX Clearinghouse, gaining a CFTC‑registered platform to list and settle prediction‑market contracts directly, while BGC remains a data‑liquidity partner.
Sources
coingape.com · decrypt.co · financemagnates.com · gamblingnews.com · gaming.net · hedgeweek.com · news.bitcoin.com · news.co.za · pulse2.com · pymnts.com · reglok.ca · tekedia.com