PrizePicks has received approval from US government agency the Commodity Futures Trading Commission (CFTC), opening the door for the US DFS operator to offer prediction markets in the future.
The approval was granted to Performance Predictions II LLC, a company which exists under the PrizePicks umbrella.
The CFTC oversees the regulation of prediction markets in the US rather than state regulators.
The firm was approved as a futures commission merchant (FCM) on Monday, 22 September, allowing it to partner with a designated contract market (DCM) in the US such as Kalshi or Crypto.com.
This would be similar to the relationship between Robinhood and Kalshi, with the former a registered FCM which offers Kalshi’s prediction markets on its platform.
With the CFTC’s approval, PrizePicks could become the latest DFS operator to enter the prediction markets space.
Earlier this month, Underdog announced its partnership with Crypto.com to roll out a prediction markets offering across the US.
Other companies tied to major operators and DFS platforms are also in the process of trying to secure CFTC approval.
According to the National Futures Association (NFA) database, an affiliate of DraftKings, Gus III Holdings, submitted an application to be listed as a brokerage and swap firm back in June.
The Fanatics-linked Morton St Trading OpCo and Underdog subsidiary UDM LLC were also on the NFA waitlist at the same time as Performance Predictions II.
The regulatory pushback against predictions markets in the US continued last week with Massachusetts Attorney General Andrea Joy Cambell filing a lawsuit against Kalshi.
The lawsuit claimed Kalshi was “promoting and accepting online sports wagers” without the required licence.
Research commissioned by the American Gaming Association (AGA) found that the majority of Americans would classify sports event contracts as a form of gambling.
Earlier this week, PrizePicks announced it had sold a 62.3% stake in the business to lottery operator Allwyn for an initial cash consideration of $1.6bn (£1.2bn).
The acquisition, which is expected to close in H1 2026, would value PrizePicks at $2.5bn.
Allwyn said that further cash could be paid out in the next three years, dependent on PrizePicks hitting certain performance targets.
If these targets were achieved, the eventual value of PrizePicks could rise to around $4.15bn.
The post PrizePicks’ prediction markets path clearer after being granted CFTC approval first appeared on EGR Intel.
New vertical now potentially on the horizon for the DFS operator, following on from its $1.6bn majority acquisition by Allwyn
The post PrizePicks’ prediction markets path clearer after being granted CFTC approval first appeared on EGR Intel.