Fanatics Buys BGC Exchange for Prediction Market Control

Fanatics plans to buy a federally regulated exchange and clearinghouse from BGC Group, replacing its reliance on outside prediction market infrastructure. The deal would give Fanatics Markets direct control over contract listings, trading technology and settlement.

Good to Know

• Fanatics will acquire Water Street Labs and CX Clearinghouse.
• Both businesses operate under Commodity Futures Trading Commission oversight.
• The purchase price was not disclosed.

Fanatics Brings Prediction Market Operations In House

Fanatics Markets launched in December 2025 through infrastructure supplied by Crypto.com Derivatives North America. Buying the BGC assets would give Fanatics its own regulated route for operating prediction markets instead.

Water Street Labs holds Designated Contract Market status, while CX Clearinghouse operates as a Derivatives Clearing Organization. Together, the two businesses provide the trading and clearing functions needed to run a federal exchange.

Direct ownership would let Fanatics decide which sports, entertainment and cultural contracts appear on its platform. It could also reduce dependence on outside exchange partners as competition grows among Fanatics, Kalshi, Crypto.com, Polymarket and newer sports focused operators.

“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,” Fanatics Betting and Gaming CEO Matt King said.

Fanatics and BGC also plan to cooperate on prediction market data products. The partnership will combine trading sentiment from event contracts with traditional financial data and analytics.

BGC Co-CEO John Abularrage said the arrangement could increase institutional participation while Fanatics brings consumer reach and knowledge of sports audiences.

Fanatics Markets Targets Retail and Institutional Traders

Fanatics Markets currently operates through iOS, Android and web platforms. Customers can trade contracts covering sports, entertainment and culture, with prices changing as users buy and sell positions.

The platform also connects trading activity with the wider Fanatics rewards system through FanCash and Fanatics ONE. That link gives Fanatics a distribution advantage across sports betting, merchandise and collectibles.

The BGC deal adds institutional infrastructure to that consumer network. Fanatics would gain direct exchange and clearing capabilities, while BGC would retain a commercial role through market data and analytics development.

The transaction still requires customary regulatory approvals and closing conditions.

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