Fanatics acquires Water Street Labs, CX Clearinghouse to enter prediction markets

Fanatics has agreed to acquire Water Street Labs and CX Clearinghouse from BGC Group, gaining ownership of a federally regulated exchange and clearinghouse for prediction market contracts. Financial terms were not disclosed. This acquisition allows Fanatics to list and clear contracts independently, enhancing control over its offerings and market launch speed. Fanatics and BGC plan to develop new market data products that integrate prediction market activity with traditional financial data. Prediction markets have rapidly gained popularity, driven by exchanges like Kalshi and Polymarket. Companies like Coinbase and Robinhood have also entered this space, expanding access to prediction markets. Fanatics aims to leverage its large sports audience to broaden the consumer base for prediction markets. The company's Markets platform launched in late 2024 and is currently available in 23 states and four U.S. territories. DraftKings has also announced plans to launch its own prediction market platform.

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