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The prediction market just got another guest. And this one has been waiting at the door for quite a while.
ProphetX announced that it has secured approval from the US Commodity Futures Trading Commission (CFTC) to operate as both a Designated Contract Market and a Derivatives Clearing Organization.
According to Dean Sisun, who happens to be ProphetX’s CEO and co-founder, their offering is the first of its kind in the US.
“This approval positions ProphetX to become the first sports-native direct-clearing prediction market in the United States,” Sisun said. “We can now expand our best-in-class sports event market offerings to millions of Americans across the country while competing on a level regulatory playing field. ProphetX thanks CFTC Chairman Selig for his leadership and the Commission’s staff for their work throughout the application process, and we look forward to helping shape the future of prediction markets.”
From sweepstakes to federal approval
Just months ago, ProphetX was operating under a sweepstakes model while waiting for regulators to make up their minds.
Now, the New York-based company has received the green light it has been chasing since filing its applications in November 2025.
The approvals also follow ProphetX’s participation in the CFTC’s discussion around prediction markets, including an April comment letter responding to the Commission’s Advance Notice of Proposed Rulemaking.
The dual approval means ProphetX can operate both the marketplace where contracts are traded and the clearinghouse responsible for settling them.
So it gets to run the entire show.
So, what exactly is ProphetX?
That is the million-dollar question.
ProphetX describes itself as a sports-native prediction market, which sounds complicated.
Rather than placing traditional sportsbook wagers against the house, users trade contracts tied to the outcome of sporting events.
The company says it has been building toward this moment for years.
According to ProphetX, its journey dates back to 2018 when it operated as a licensed peer-to-peer sports trading marketplace in the United Kingdom. Long before prediction markets became one of the hottest topics in gambling, ProphetX was already experimenting with exchange-style sports trading.
The feature ProphetX thinks will set it apart
So ProphetX believes its edge lies in its technology.
The company plans to launch with a proprietary Request for Quote Parlay Mechanism. It is a financial technology lets regular players build and price multi event combinations directly with other users on the platform.
That may sound technical, but the concept is designed to appeal to one very important group. Parlay lovers.
Americans adore parlays. Sportsbooks know it. Bettors know it. The fact that ProphetX is building an exchange product around them shows it understands where consumer demand lives.
Instead of simply copying existing prediction market models, ProphetX appears to be building its approach to sports bettors who already enjoy constructing elaborate combinations in traditional sportsbooks.
The company has not yet announced an official launch date for its federally regulated exchange, but the company’s current operations suggest next week.
For now we can expect an uproar from state-licensed sportsbooks arguing that event contracts can resemble sports betting products while operating under a completely different regulatory framework.
While that argument remains unsettled, a few courtroom battles might show along the way.
