ProphetX has secured federal approval to run a regulated sports prediction exchange in the U.S., adding another name to the fast growing event contract race.
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ProphetX can now build under the federal prediction market framework after the U.S. Commodity Futures Trading Commission approved its applications for two key licenses.
The New York company said Thursday that it received approval to register as a designated contract market and derivatives clearing organization. In plain terms, the DCM license lets ProphetX list contracts for trading, while the DCO license lets it clear those trades.
That structure matters because ProphetX wants to offer sports event contracts without relying on another clearing partner. It also gives the company a cleaner regulatory path as sports prediction markets keep pulling interest from Kalshi, Polymarket, DraftKings, FanDuel and other operators.
ProphetX filed its applications in November 2025. Until now, the company operated with a sweepstakes model in the U.S. while waiting for a CFTC answer. The company said it has worked on peer-to-peer sports betting infrastructure since 2018, starting in the United Kingdom.
A launch date for the federally regulated exchange remains open. Still, ProphetX already plans to lean into a feature many sports bettors know well: parlays.
Its proprietary Request for Quote Parlay Mechanism would let users build and price combo bets directly with counterparties. That peer-to-peer setup fits the exchange model, where users trade against each other instead of taking house-set sportsbook odds.
“We can now expand our best-in-class sports event market offerings to millions of Americans across the country while competing on a level regulatory playing field,” said ProphetX CEO and cofounder Dean Sisun.
More than a dozen DCM applications remain pending before the CFTC, so ProphetX enters a crowded queue of prediction market operators, sports betting brands and financial market firms. CFTC rulemaking around event contracts also remains a key watch point, especially for sports markets, compliance teams and state gaming regulators.