PrizePicks Earns CFTC Approval to Offer Prediction Markets in US

^{Pictured above is Caroline Pham, Acting Chair of the CFTC. The organization has played a key role in shaping rules around event contracts and prediction markets for platforms like PrizePicks. (Photo: @CarolineDPham / X)}

Fantasy sports platform PrizePicks announced Tuesday that it is now registered as a Futures Commission Merchant (FCM) by the National Futures Association (NFA), making it the first fantasy sports-affiliated company allowed to buy and sell futures contracts regulated by the Commodity Futures Trading Commission (CFTC). 

The move, completed by subsidiary named Performance Predictions II, LLC, will allow PrizePicks to enter the sporting events contract space alongside brands like Robinhood.

PrizePicks Eyes Partnership Role in Contract Offerings

Under this designation, PrizePicks would still have to work with a designated contract market such as Kalshi in order to offer contracts through its website or other platforms. This setup mirrors Robinhood's approach, where users can buy contracts from Kalshi’s market through the Robinhood app.

“The honor of being the first sports entertainment platform to receive a FCM registration from the NFA is a testament to our industry-leading compliance and consumer protection programs,” PrizePicks CEO Mike Ybarra said in a statement. “Acting Chairman Caroline Pham’s vision for the CFTC promotes innovation while reinforcing the importance of strong regulatory standards. Her leadership has set a thoughtful ton for the agency and our industry.”

The CFTC's stance under the Trump administration has paved the way for rapid growth in event contracts from prediction markets. After winning a court case last year that allowed it to offer contracts on US elections, Kalshi expanded into sports events in early 2025. The CFTC later dropped its appeal of the ruling, and Polymarket has announced plans to rejoin the American market as well

However, the move into sports predictions hasn’t been entirely smooth. Both state governments and tribal gaming interests have bristled at the offerings, saying that they are simply unregulated sports betting under another name.

Allwyn Buying Majority Stake in PrizePicks

The potential pivot to prediction markets comes as European lottery firm Allwyn announced Monday that it will acquire a majority stake in PrizePicks, valuing the company at $1.6 billion. The deal is expected to close sometime in the first half of 2026. 

According to Ybarra, having Allwyn backing the company will allow PrizePicks to further its expansion throughout the U.S.

“We are in 45 states now,” Ybarra said, via Reuters. “It’s my prediction that we will be in 50 states across the board, and this will be broadly accepted and regulated in the United States.”

Allwyn is owned by the KKCG investment group and Czech billionaire Karel Komarek. The company operates lotteries in Austria, the Czech Republic, Greece, and Italy along with managing the Illinois State Lottery. In 2024, the company took over the UK’s National Lottery and purchased a majority stake in Novibet, a significant stake in Kaizen Gaming, 

PrizePicks is a daily fantasy sports platform in which users predict whether players will go above or below various statistical totals. Each bet includes between two and six picks, with multiple payout structures depending on accuracy.