Two more businesses in fantasy sports and sweepstakes-based sports betting plan on getting into prediction markets, with Rebet and Realtime Fantasy Sports among the latest companies to apply for registration with the National Futures Association (NFA).
The NFA is a self-regulatory entity for futures commission merchants (FCMs) and introducing brokers. Any company that wants to direct customers toward CFTC-regulated contracts listed on another exchange must register with the NFA, and the CFTC has effectively delegated registration of FCMs and introducing brokers to the association.
Rebet, a social sportsbook and casino, submitted its application to be an FCM on June 11. An FCM, the status held by FanDuel and Coinbase, can offer its users contracts that are traded on a registered exchange, like Kalshi or Polymarket US.
Realtime Fantasy Sports, a 31-year-old fantasy sports platform, submitted an application of its own, also on June 11.
Other recent FCM applications
Castle Technologies is a recent startup that aims to use prediction market contracts to provide insurance to small businesses that could be impacted by political developments.
Sharp Square Markets applied to be an introducing broker in May. Sharp Square Markets is linked to Sharp Square Capital, an investment firm focused on event contracts, founded by Flip Pidot, a prominent prediction market commentator and member of the board of directors at the Coalition for Political Forecasting.
The new applications come amid more approvals for designated contract markets (DCMs), which can operate as exchanges and partner with FCMs. ProphetX and Novig were both approved as DCMs within the last two weeks, less than six months after thier applications first appeared on the CFTC portal.
