PrizePicks Wins CFTC Approval, Could Enter Prediction Markets Soon
Fantasy sports company PrizePicks was approved as a futures commission merchant (FCM) on Monday, potentially paving the way for it to offer sports betting via prediction markets.
As an FCM registered with the Commodity Futures Trading Commission, PrizePicks can work with a designated contract market (DCM) such as Kalshi or Crypto.com to offer prediction markets. Robinhood, for instance, is a registered FCM and offers Kalshi’s markets — both sports and otherwise — via that status.
The entity that won approval is Performance Predictions II LLC. As reported by SBC Americas earlier, this entity is under the PrizePicks umbrella.
The National Futures Association shows Performance Predictions II LLC as an “approved” member and a “CFTC Registered Futures Commission Merchant.” The entity is “doing business as” PrizePicks Predict. The NFA processes FCM applications on behalf of the CFTC.
The news follows the announcement that international gaming company Allwyn acquired a majority stake in PrizePicks earlier Monday.
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PrizePicks would look to become the second fantasy sports company to join the prediction markets industry. Underdog launched sports betting via prediction markets earlier this month in a deal with Crypto.com. In that relationship, Underdog is not acting as an FCM but rather as a “technology partner.” But it still allows Underdog to offer sports event contracts.
Just last week, attorneys for the fantasy app Sleeper blasted the CFTC for delays in gaining FCM approval. Sleeper is not listed as an active FCM as of the publication of this newsletter.