Fanatics to Buy CFTC-Regulated Exchange and Clearinghouse From BGC

Prediction markets allow traders to buy and sell contracts tied to outcomes in sports, politics and finance, a category propelled by venues including Kalshi and Polymarket. Fanatics entered the segment with Fanatics Markets in December 2025, initially using infrastructure from Crypto.com Derivatives North America. Bringing exchange listing and clearing in-house would give the sports platform greater control over product launches and settlement while reducing reliance on outside providers, as betting companies race to build federally regulated event-contract businesses.

Fanatics and BGC Group said on July 27, 2026, that Fanatics would acquire Water Street Labs, a Commodity Futures Trading Commission-registered designated contract market, and CX Clearinghouse, a registered derivatives clearing organization. Financial terms were not disclosed. The purchase will let Fanatics directly list and clear prediction contracts for customers; Fanatics Markets currently operates in 23 states and four U.S. territories. The companies also plan data products combining prediction-market sentiment with traditional financial-market information for retail and institutional users.