ProphetX has teamed with Players’ Lounge to offer sports prediction markets within the Players’ Lounge ecosystem.
Put another way: Gamers who have been wagering on video games will now have the opportunity to wager on real-life sporting events without leaving the lounge.
“Players’ Lounge has built something genuinely rare: a platform where a new generation of sports fans already shows up, competes, and has real money on the line,” Jake Benzaquen, co-founder and chief commercial officer at ProphetX, said in a press release. “That community deserves access to the most competitive, transparent markets on the planet — and that’s exactly what ProphetX provides. This isn’t sports betting dressed up in new clothes. It’s a federal exchange where the crowd sets the price and every participant is on a level playing field.”
Players’ Lounge, founded in 2016 and backed by Drake, Comcast Ventures, Y Combinator, and others, is a real-money, skill-based gaming platform where players can bet on their own performance in a series of video games, including Madden NFL, NBA 2K, Call of Duty, Fortnite, and others.
“Prediction markets on ProphetX are a perfect fit for what Players’ Lounge is all about: putting your knowledge to work in a fair, skill-driven environment,” Players’ Lounge CEO Austin Woolridge said. “We’re excited to give our community a regulated, exchange-based way to trade on the games they care about most.”
A pivot for the company
ProphetX has changed shape repeatedly since its 2018 founding as Prophet Exchange, a peer-to-peer sports betting exchange licensed only in New Jersey. The company wound that down, rebranded, and moved to a sweepstakes model in 2024, then filed with the Commodity Futures Trading Commission (CFTC) in November 2025 to become a federally regulated exchange.
The CFTC approved ProphetX as both a designated contract market and a derivatives clearing organization on June 11. The company launched nationwide a week later. It offers sports contracts exclusively.
The Players’ Lounge deal fits a strategy Benzaquen outlined to InGame in June, when he said the company would not try to match Kalshi and Polymarket on customer acquisition spending and would instead concentrate on business-to-business partnerships.
