Fanatics Buys BGC’s CFTC-Registered Entities to Enter Regulated Prediction Markets

Fanatics has acquired Water Street Labs and CX Clearinghouse, both registered with the Commodity Futures Trading Commission (CFTC), from BGC Group. The purchase gives Fanatics a federally regulated Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), enabling it to offer prediction markets under US oversight. Financial terms of the deal have not been disclosed.

"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," said Matt King, CEO of Fanatics Betting and Gaming. He added that combining BGC's institutional exchange expertise with Fanatics' deep understanding of fan engagement will accelerate prediction market growth and deliver a high-quality experience for both retail and institutional participants.

The two companies will also collaborate to develop new client data products that merge prediction market sentiment with traditional financial market data. BGC Co-CEO John Abularrage called the transaction "an important strategic step" for expanding data and analytics capabilities, noting that "no one knows the sports fan better than Fanatics" and stating the acquisition will help broaden institutional adoption of prediction markets.

Fanatics plans to use the newly acquired infrastructure to expand its Fanatics Markets platform, with the freedom to list and clear prediction markets across a wider opportunity set. On June 4, the operator launched the Fanatics One loyalty program, allowing users to earn up to 10% in FanCash on every trade, redeemable for merchandise, tickets, collectibles, and future wagers. The program, first introduced in 2025, strengthens the connection across Fanatics’ broader sports ecosystem.