Simply put
- Prizepicks has become the first sports entertainment operator to receive an FCM license from the National Futures Association, allowing it to offer a forecast market.
- The move follows the acquisition of European giant Allwyn International, a $1.6 billion acquisition of Prizepicks’ 62.3% stake earlier this week.
- Prizepicks has joined Fanduel as the second leading sports betting company that enters the forecast market space, which is estimated to reach $95 billion by 2035.
Sports Betting Powerhouse Prizepicks is taking part in the forecast market game after Futures Commission Merchant (FCM) landed a National Futures Association license.
This will make the company the first sports entertainment operator to receive FCM from the NFA, allowing them to list contracts from the licensed forecast market. It will also become the second major sports betting company next to Fanduel, joining the Red Hot Prediction Market Biz, which could reach $95 billion by 2035. The sportsbook’s Draftkings competition is rumoured to explore a jump to the forecast market, but still confirms their intentions.
Prizepicks’ new license also shows the expansion of European lottery giant Allwyn International into the US market. Earlier in the week, the company acquired a 62.3% stake in the DFS operator in trading worth $1.6 billion.
Allwyn is a global lottery operator and manages the UK national lottery. In fact, the company already had a small foothold in the US before the contract was finalized.
“For Allwyn, the deal is a unique opportunity to enter the U.S. strategically important sports and entertainment industry, expanding its domestic operations beyond the existing operations of the Illinois lottery,” the company said in a press release.
Prizepicks offers real money and peer-to-peer games for 35 states and Washington DC
The Daily Fantasy Sports app specializes in “Pick Em” style contests. Instead of drafting an entire team and competing with other bettors, users place a parlay style bet on whether the athlete will get past the statistics or go under the statistics.
“The honor of being the first sports entertainment platform to be registered as an FCM from the NFA is a testament to the industry’s leading compliance and consumer protection programme, where both the demand for the NFA and CFTC is both testament to the industry’s leading compliance and consumer protection programme,” the CEO of Prizepicks said in a press release.
A Prizepicks spokesperson said Decryption The company said it was “not something specific to share yet” about its plans to provide a forecast market for users.
FCM grants PrizePicks permission to provide a predictive market by partnering with a company with a designated contract market (DCM) license. The list of DMC holders has grown considerably over the past year, including two largest forecast market operators, Kalshi and Polymarket.
Companies can list and clear their own forecast market contracts, not just DCM, but they cannot sign them on FCM. The latter allows companies to act as third-party brokers in forecast market platforms. For example, Robinhood holds an FCM license on its derivative arm, allowing it to offer its users the Kalshi forecast market.
Sportsbooks and forecast market companies are competing to obtain such licenses from the CFTC to legally enter the US market, where Calci has ever controlled. Last week, Kalshi reported that it reached a monthly volume of $1 billion from the market as it jumped over Polymet in the sector’s global market share.
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