Fanatics has acquired derivatives clearinghouse Water Street Labs from Nasdaq-listed BGC Group so it can offer its own federally regulated prediction market.
Fanatics Markets will now own its prediction markets infrastructure, enabling it to list and clear prediction markets without an intermediary.
Alongside the acquisition, BGC has partnered with Fanatics to contribute data and analytics to develop new products combining the prediction market with traditional financial market data.
The deal means that Fanatics Markets can connect retail-focused prediction markets with the institutional marketplace for the first time.
“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 Fanatics Betting and Gaming Chief Executive Matt King.
