Want to get more Covers content? Add us as a preferred source on your Google account here.
Peer-to-peer exchange ProphetX launched its sports-native platform across the U.S. on Thursday, the company confirmed in an announcement.
The launch comes on the back of the platform receiving approval from the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO).
Key Takeaways
- ProphetX does not offer prediction markets in industries other than sports.
- The World Cup has already generated a horde of trades from consumers.
- ProphetX can conduct all relevant trading processes internally.
Unlike competing platforms that offer prediction markets in weather, finance, politics, entertainment, and other industries, ProphetX focuses solely on sports contracts. Its CFTC-regulated status means that it can offer sports event contracts across the country, so long as it remains compliant with the federal standards.
“At one of the most exciting moments in the sports calendar, ProphetX is now available nationwide for more American sports fans to trade on our faster, transparent, and fully regulated exchange where the market sets the price — not the house,” ProphetX CEO and Co-Founder Dean Sisun said in the announcement. “ProphetX puts customers first, delivering deeply liquid, competitively priced markets and the best user experience in the sports prediction market space.”
The “exciting” time of the sports calendar referenced by Sisun pertains to the 2026 FIFA World Cup, which has generated a ton of interest at prediction platforms.
Market leaders Kalshi and Polymarket reported close to $3 billion in trades related to just the tournament winner. That doesn’t account for individual matches, group races, player performances, and additional markets.
Away from the pitch, traders can find markets for the U.S. Open, which began on Thursday, the MLB regular season, and more sports events.
Plans for operation
ProphetX’s dual-approval as a DCM and DCO allows it to use an in-house system where contracts are traded, cleared, and settled without the assistance of other platforms.
“This approval positions ProphetX to become the first sports-native direct-clearing prediction market in the United States,” Sisun said after ProphetX received its CFTC license last week. “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 [Michael S.] 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.”
ProphetX’s platform includes a proprietary “Request for Quote” option, where users can build and set the price of a combination event — known at sportsbooks as a parlay.
Unlike sportsbooks, prediction market users determine the price of contracts with real-time input. Contracts are also traded in a peer-to-peer format and do not contain a consistent house-made vig that eats into the available probability of various outcomes.
Competition in prediction markets
Just as prediction market news has raised lots of eyebrows across the country, it has also generated interest from operators. Successful operators are handling millions, if not billions, in weekly trading volume, and momentum is building rapidly.
Just a couple of days ago, Novig — once a sports betting and sweepstakes operator — received its CFTC approval to rebrand as a licensed prediction platform.
Even as more platforms enter the industry, Kalshi and Polymarket hold a tight grip over the national market. According to prediction market tracker DeFi Rate, Kalshi handled a massive $6.2 billion in trades during the week ending on June 14.
This article originally appeared on Covers.com, read the full article here and view our best betting sites or check out our top sportsbook promos.
