Fanatics Acquires BGC Group Assets to Launch Prediction Market Exchange
Fanatics, a global sports platform, has announced the acquisition of Water Street Labs LLC and CX Clearinghouse L.P. from brokerage firm BGC Group (KLSH.PVT). These assets include a designated contract market and derivatives clearing organization registered with the Commodity Futures Trading Commission. Fanatics plans to use these acquisitions to launch its own prediction market exchange, expanding on its 2025-launched subsidiary, Fanatics Markets. Fanatics Markets allows users in 23 U.S. states—including California, Texas, and Florida—to trade contracts based on sports outcomes such as game winners and tournament champions. The deal is expected to enhance the company's prediction market offerings but comes amid regulatory scrutiny of similar platforms like Kalshi, which have faced legal challenges over gambling laws. Matt King, CEO of Fanatics Betting and Gaming, emphasized that combining institutional infrastructure with consumer engagement will help accelerate growth in this emerging asset class.
Topics: BGC Group Fanatics prediction markets sports betting