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Fanatics to Purchase Water Street Labs, CX Clearinghouse

Lou Monaco

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Publish Date: Jul 27, 2026

Fact checked by: Sara Jane Gamelli

Key Points

Fanatics announced an agreement to purchase CFTC-approved prediction market exchange Water Street Labs LLC and CX Clearinghouse L.P. from BGC Group Inc.
To date, Fanatics Markets has brokered for third-party exchanges.
Fanatics Markets debuted in December 2025.

Fanatics is ready to go it alone in the prediction market space.

Fanatics announced Monday morning an agreement to purchase CFTC-approved prediction market exchange Water Street Labs LLC and CX Clearinghouse L.P. from BGC Group Inc.

To date, Fanatics Markets has brokered for third-party exchanges.

The acquisition of both will enable Fanatics to offer its own federally regulated prediction market exchange and expand its prediction market offerings on Fanatics Markets.

In addition, Fanatics and BGC will partner to deliver new market data, enabling the development of new client data products that combine prediction market sentiment with traditional financial market data.

“BGC are experts in the financial services industry and, like Fanatics, have built their business on a foundation of cutting-edge technology, innovation, and exceptional talent,” said Matt King, CEO of Fanatics Betting and Gaming in a news release.

“Their expertise in building and operating regulated exchanges, clearinghouses, trading technology, and institutional market infrastructure makes them an ideal partner. By combining that institutional foundation with Fanatics’ unmatched understanding of fans and consumer engagement, we have a unique opportunity to accelerate the growth of prediction markets and deliver a best-in-class experience for both retail and institutional participants.”

Fanatics Markets is available on iOS, Android and online in 23 states and four U.S territories. Since its December 2025 debut, Fanatics Markets has ushered in a new era of loyalty and rewards with the introduction of FanCash and Fanatics ONE - giving customers an experience where trades can earn rewards.

Fanatics Markets also introduced Combos, FanViz and consumer protections that equip customers with Risk Management tools to help manage exposure, trade responsibly and make informed trading decisions.

“This represents an important strategic step for BGC to expand our data and analytics capabilities while combining our institutional expertise with Fanatics' consumer reach,” said John Abularrage, BGC Co-CEO. “No one knows the sports fan better than Fanatics, and we believe the acquisition of BGC’s DCM and DCO will supercharge Fanatics Markets. Together, we intend to broaden institutional adoption of prediction markets and create innovative data products that unlock new insights for market participants.”

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