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Fanatics to buy federally regulated exchange for its own prediction markets
The acquisition will give Fanatics ownership of the exchange and clearinghouse it needs to list and clear its own contracts, with new market data products planned alongside BGC.
Fanatics has agreed to acquire Water Street Labs and CX Clearinghouse from BGC Group, aiming to build and settle its own prediction market contracts on a federally regulated exchange and clearinghouse. CoinDesk reports the deal is structured to give Fanatics control of the infrastructure used to launch and clear event-based contracts.
Financial terms were not disclosed. Fanatics said the ownership change should allow it to list and clear contracts itself, which could also help speed up the rollout of new prediction markets.
The companies also plan to develop market data products that combine prediction market activity with traditional financial market data. CoinDesk notes Fanatics is entering a sector that has grown rapidly, supported by platforms such as Kalshi and Polymarket.
Fanatics’ move comes as other major trading platforms have expanded into prediction markets, including Coinbase partnership with Kalshi for users in 50 states and Robinhood’s offering of event contracts through the same exchange. CoinDesk adds that Fanatics’ Markets platform launched in late 2024 and is available in 23 states and four U.S. territories.