Fanatics Acquires BGC Group Assets for Prediction Market Launch

Fanatics, a global sports platform, will acquire a designated contract market and a derivatives clearing organization from brokerage BGC Group. This acquisition aims to facilitate Fanatics’ launch of its own prediction market exchange, as announced by the companies on Monday.

What Happened

Fanatics is set to acquire a designated contract market and a derivatives clearing organization from BGC Group, a brokerage firm, according to The Star. This transaction is intended to enable Fanatics to establish and operate its own prediction market exchange. The companies confirmed the acquisition on Monday, July 27, 2026, as reported by Reuters via The Star.

Specifically, Fanatics will purchase Commodity Futures Trading Commission-registered entities, Water Street Labs, LLC (a designated contract market) and CX Clearinghouse L.P. (a derivatives clearing organization), from BGC. The financial terms associated with this deal have not been publicly disclosed, according to Fanatics Inc.

Key Details

• Fanatics will acquire Water Street Labs, LLC and CX Clearinghouse L.P. from BGC Group, according to The Star.
• Water Street Labs, LLC is a Commodity Futures Trading Commission-registered contract market, and CX Clearinghouse L.P. is a derivatives clearing organization (Fanatics Inc.).
• The financial details of the acquisition were not revealed in the announcement (Fanatics Inc.).
• Fanatics Markets, established in 2025, is the prediction markets subsidiary of Fanatics (The Star).
• The platform facilitates trading on sports outcomes, including game winners, player milestones, and tournament champions (The Star).
• Currently, the platform is accessible in 23 U.S. states, encompassing California, Texas, and Florida (The Star).
• Matt King, CEO of Fanatics Betting and Gaming, stated the acquisition combines an institutional foundation with Fanatics’ understanding of fans (Fanatics Inc.).

Why It Matters

The acquisition of regulated exchange and clearinghouse infrastructure marks a strategic move for Fanatics in the prediction markets sector. This transaction is poised to support Fanatics’ expansion of its prediction market offerings, which commenced with the launch of Fanatics Markets in 2025, operating in 23 U.S. states including key markets like California, Texas, and Florida (according to The Star). The integration of these assets from BGC Group is intended to bolster Fanatics’ ability to manage and expand its prediction market operations, allowing users to trade on various sports outcomes.

This development occurs within an industry context where prediction market startups have encountered regulatory scrutiny regarding gambling laws, with critics sometimes characterizing such platforms as unapproved gambling operations, as reported by The Star. The CEO of Fanatics Betting and Gaming, Matt King, indicated that the combination of this institutional foundation with Fanatics’ engagement capabilities presents an opportunity to accelerate the growth of prediction markets for both retail and institutional participants (Fanatics Inc.). This move signals Fanatics’ intent to deepen its presence in regulated prediction markets.

What’s Next

The deal is anticipated to assist Fanatics in expanding its prediction market offerings, according to The Star. Matt King, CEO of Fanatics Betting and Gaming, asserted that combining the institutional foundation with Fanatics’ understanding of fans and consumer engagement provides a unique opportunity to accelerate the growth of prediction markets and deliver an experience for both retail and institutional participants (Fanatics Inc.).

Originally reported by The Star·Published 27 Jul 2026, 13:56