Fanatics, a leading sports merchandising company, is making a strategic move into the growing field of prediction markets by acquiring a federally regulated exchange and clearinghouse from BGC Group.
This acquisition allows Fanatics to launch and manage its own prediction market contracts, enhancing its competitive stance in a rapidly evolving market.
On July 27, 2026, Fanatics announced the purchase of Water Street Labs and CX Clearinghouse, although the financial terms of the deal remain undisclosed. This acquisition positions Fanatics to independently list and clear contracts, which will streamline its market offerings and expedite the introduction of new products.
The prediction market sector has gained significant traction recently, fueled by platforms like Kalshi and Polymarket. Fanatics intends to tap into its vast sports audience to further popularize prediction markets, building on the success of its Markets platform that launched in late 2024 and is now available in 23 states and four U.S. territories.
