Fanatics is continuing to solidify its footprint in the prediction market space after receiving approval to host event contract trading on its standalone platform without a partner.
As first reported by PredictionMarketPulse, Fanatics Markets has received approval from the National Futures Association (NFA) to operate as a futures commission merchant (FCM) and a swap firm. Fanatics Markets’ registration as an FCM allows the company to provide event contract trading and also handle financial transactions for its customers.
Fanatics Markets had previously given a third-party entity the responsibility of holding customer funds before its approval as an NFA-approved FCM and swap firm.
Fanatics makes history in the prediction market space
Last December, Fanatics became the first sports betting operator to launch its own standalone prediction market product. The company debuted Fanatics Markets after acquiring Paragon Global Markets, an introducing broker registered with the Commodity Futures Trading Commission (CFTC).
Paragon is also registered with the NFA.
Fanatics is registered with the CFTC under a separate company, Morton St Trading Investments, LLC. Its approval as an NFA member and FCM is also under the same entity.
Fanatics’ acquisition of Paragon spearheaded its entry into the prediction market space right before the company secured a partnership with Crypto.com. The partnership allows Fanatics to offer Crypto.com’s event contracts on its standalone prediction market.
Fanatics’ partnership with Crypto.com allowed the company to enter the prediction market space without the necessary NFA and CFTC approvals to handle customer funds. Now, Fanatics can handle customer fund transactions behind its registration with the NFA.
Splash Sports takes a dip into prediction markets
Splash Sports is entering the prediction market space as an NFA-registered introducing broker, allowing it to accept event contract orders but not handle customer funds.
The skill-based social gaming company is taking steps to offer event contracts after closing a $14.5m Series B funding round in 2025 led by investment firm Dream Ventures. The funding round added to a fresh injection of capital in 2024 after a $14m Series A2 round.
Splash Sports has a portfolio of angel investors that includes New England Patriots President Jonathan Kraft and Fenway Sports Group advisor Theo Epstein.
Other gaming brands seek NFA & CFTC approval
Fanatics and Splash Sports join Sleeper and Sporttrade as gaming brands seeking approval from the NFA and the CFTC.
In January, Sleeper was approved by the NFA to operate as an FCM and a swap firm through an affiliated entity. Sleeper gained NFA approval after a dispute with the CFTC over the agency instructing the NFA to withhold the company’s NFA application. The dispute led Sleeper to take legal action against the CFTC by suing the agency in D.C. District Court.
Sleeper dismissed the legal action against the CFTC after the NFA approved its registration.
Meanwhile, Sporttrade has applied for registration as a DCM with the CFTC. The sports betting exchange offers event contract trading in markets where it holds a gaming license.
CFTC approval as a DCM would allow it to supply event contracts nationwide. Sporttrade has also applied as a derivatives clearing organization with the agency.
