PrizePicks Secures CFTC Approval as FCM, Eyes Prediction Markets
Summary
PrizePicks’ subsidiary SidePrize has received approval from the Commodity Futures Trading Commission (CFTC) as a futures commission merchant (FCM) and has joined the National Futures Association (NFA). The registration paves the way for PrizePicks to launch a prediction markets product reportedly to be called PrizePicks Predicts. This regulatory step comes as Czech lottery group Allwyn moves to acquire a 62.3% majority stake in PrizePicks for an initial $1.6 billion plus up to $1 billion in performance-based payments.
Key Points
- SidePrize, a PrizePicks subsidiary, secured CFTC approval as an FCM and became an NFA member.
- PrizePicks is planning a prediction markets platform, expected to be named PrizePicks Predicts.
- CEO Mike Ybarra says PrizePicks is the first sports entertainment platform to gain FCM registration, highlighting its compliance and consumer protection efforts.
- Allwyn has agreed to buy 62.3% of PrizePicks for $1.6bn up front, with up to $1bn additional contingent on performance; the deal is expected to close in H1 2025.
- Prediction markets are growing rapidly — for context, Kalshi recently surpassed $1 billion in monthly trading volume — signalling a sizeable market opportunity.
Context and Relevance
Gaining FCM registration is a meaningful regulatory milestone that allows PrizePicks to offer regulated futures-style and prediction market products in the US. The move represents a strategic pivot from daily fantasy sports toward tradable prediction markets, an area attracting both retail traders and institutional interest. Backing from Allwyn gives PrizePicks deeper resources and a clearer path to scale in North America.
Why should I read this?
Short and blunt: if you follow US gambling, fintech or prediction markets, this is worth your time. PrizePicks getting an FCM nod — plus Allwyn’s big-money takeover — could stir up competition, bring more regulated retail access to prediction products, and change who wins in the sector. We’ve read the announcement so you don’t have to.