Fanatics Acquires Regulated Exchange to Expand Prediction Markets

Markets Fanatics Acquires Regulated Exchange to Expand Prediction Markets

The acquisition enables Fanatics to establish its own prediction market infrastructure amid the growing popularity of event-based trading in sports, finance, and cryptocurrency.

By Helene Braun|Edited by Nikhilesh De Jul 27, 2026, 2:46 p.m. 2 min read

• Fanatics will purchase BGC's federally regulated exchange and clearinghouse to create and manage its own prediction markets.
• This move positions Fanatics to compete with rapidly growing prediction market platforms like Kalshi and Polymarket.
• Furthermore, Fanatics and BGC intend to develop innovative market data products that merge prediction market trends with conventional financial data.

Fanatics, an American sports merchandising giant, is taking a significant step into the realm of prediction markets, a sector that has surged in popularity over the last year as traders engage in betting on a variety of topics, including elections, inflation, and sporting events.

On Monday, the company revealed its agreement to acquire Water Street Labs and CX Clearinghouse from BGC Group, which will grant Fanatics ownership of a federally regulated exchange and clearinghouse, enabling it to initiate and settle its own prediction market contracts. Financial details of the transaction have not been disclosed.

This acquisition will empower Fanatics to independently list and clear contracts, thereby enhancing its control over the products it offers and accelerating the launch of new markets. In addition, Fanatics and BGC plan to create new market data products that integrate prediction market activities with traditional financial data, according to their announcement.

Prediction markets have emerged as one of the fastest-growing sectors within finance, largely driven by the success of CFTC-regulated exchange Kalshi and the blockchain-based platform Polymarket.

Companies in the cryptocurrency space have also been instrumental in bringing prediction markets into the mainstream. Notably, Coinbase collaborated with Kalshi to extend prediction market services to its users across all 50 states, while Robinhood has initiated the offering of event contracts through the same exchange.

Amidst this backdrop, Fanatics aims to leverage its extensive sports audience to broaden the appeal of prediction markets. The company's Markets platform, launched in late 2024, is currently accessible in 23 states and four U.S. territories.

Similarly, operators of sportsbooks are venturing into prediction markets, with DraftKings announcing plans to introduce its own platform late last year.