Fliff, the free-to-play social sports gaming app and mobile sweepstakes platform “where making sports predictions becomes a social experience,” and Onyx Odds, the platform that accepts sports predictions via virtual currencies, have taken important steps toward the federally regulated derivatives market.
The move comes amid sweepstakes gaming facing growing regulatory pressure across the United States.
According to the National Futures Association (NFA), both companies registered with the organization on August 12, and their applications are currently pending for registration as Futures Commission Merchants (FCMs), NFA members, and swap firms.
What the Filings Mean
In short, the filings do not allow the companies to immediately operate a prediction market, but rather signal a potential expansion into the rapidly growing event-contract sector, possibly giving them a more direct role in federally regulated derivatives trading.
An FCM is a federally regulated intermediary that can accept customer orders for futures, options, and swaps and can also handle customer funds or other assets used to support those transactions.
The structure is broadly comparable to a traditional brokerage, although FCMs operate within the derivatives market.
As previously mentioned, FCM registration does not allow Fliff or Onyx to operate a prediction market exchange.
Exchanges such as Kalshi operate as Commodity Futures Trading Commission-designated contract markets, while FCMs can act as intermediaries connecting customers with federally regulated markets.
The applications could still give the companies significantly more capabilities than an introducing broker, which can accept customer orders but cannot hold customer funds.
Onyx already has a foothold in the sector through Onyx Predictions, which operates as an NFA-registered introducing broker. Its new application could allow the company to bring additional parts of its operations in-house.
Fliff, meanwhile, is known for its social sportsbook model, which uses virtual currencies and sweepstakes mechanics that allow eligible users to redeem prizes for cash.
Other companies like Novig, ProphetX, and Betr have pursued different strategies for entering the sector. For example, ProphetX and Novig sought designation as designated contract markets, while Betr acquired an NFA-registered introducing broker in May.
Fliff, the free-to-play social sports gaming app and mobile sweepstakes platform “where making sports predictions becomes a social experience,” and Onyx Odds, the platform that accepts sports predictions via virtual currencies, have taken important steps toward the federally regulated derivatives market. The move comes amid sweepstakes gaming facing growing regulatory pressure across the United States.