DraftKings has submitted a new application to join the National Futures Association (NFA) — a key early step toward entering the world of prediction markets — while Underdog and PrizePicks have submitted applications of their own.
The association is a body for the U.S. derivatives industry rather than an official regulator, but all members must follow certain rules, such as acting “in general, to protect the public interest.” This can help a business gain approval to become a Designated Contract Market (DCM) registered with the Commodity Futures Trading Commission (CFTC) and launch event contracts on topics including sports.
However, membership is not a requirement for involvement in prediction markets.
