Fanatics Acquires BGC Subsidiaries to Launch Regulated Prediction Market Platform

Fanatics buys Water Street Labs and CX Clearinghouse to independently issue event contracts, leveraging its sports user base for mass adoption in the expanding prediction market sector.

Woofun AI reports that U.S. sports retail giant Fanatics has agreed to acquire Water Street Labs and CX Clearinghouse, subsidiaries of BGC Group, to obtain a federally regulated exchange and clearinghouse. This acquisition enables Fanatics to independently issue and clear event contracts, enhancing control over product design and launch speed while planning new market data products combining prediction and traditional financial data.

Fanatics aims to leverage its large sports user base to promote mass adoption of prediction markets, building on its Markets platform launched by the end of 2024, which currently covers 23 U.S. states and 4 international regions. The move enters a competitive landscape featuring CFTC-regulated Kalshi, blockchain-based Polymarket, and recent entries from Coinbase, Robinhood, and DraftKings.