DraftKings, PrizePicks, Others May Be Readying Prediction Market Plans
Posted on: August 21, 2025, 11:28h.
Last updated on: August 21, 2025, 11:54h.
- NFA registry indicates DraftKings may again be evaluating prediction markets entry
- Fanatics also has a filing with the NFA
- PrizePicks, Underdog Fantasy also mulling NFA membership
A batch of recent filings with the National Futures Association (NFA) indicate that DraftKings (NASDAQ: DKNG) and some other well-known gaming companies are looking to register with the association, potentially signaling interest in getting into the prediction markets space.
Previously, DraftKings was considered a pending member of the NFA, but it pulled its application with the association earlier this year. A principal filing for an entity known as Gus III LLC was approved by the NFA on June 25. That filing includes a DraftKings address and shows co-founders Paul Liberman and Jason Robins, who’s also the chief executive officer, among the listed principals.
DraftKings didn’t give a reason why it pulled its prior NFA application. More recently, the sportsbook operator’s potential prediction markets ambitions have been tied to acquisition rumors. It’s possible the NFA filing could signal the gaming company is exploring other avenues for prediction markets exposure and simply keeping its options open.
Count Fanatics Betting & Gaming among the other well-known wagering firms that have registered with the NFA. A May filing by an entity known as Morton St. Trading OpCo could be a sign that privately held Fanatics is considering prediction markets, perhaps on the international scale, because the filing was amended on July 31 with a request to be added as a foreign currency broker. Morton Street is where Fanatics’ New York office is located, and the principals listed in the filing are high-ranking executives at the company’s gaming arm.
Why it Matters
NFA registrations by gaming companies are relevant because the entity is deemed a “registered futures association” by the Commodities Futures Trading Commission (CFTC), which is the regulatory body to which operators of yes/no exchanges operate.
The Commodities Exchange Act (CEA) stipulates that exchanges offering derivatives and futures contracts to clients must be registered with the CFTC. Nearly all CFTC members are registered with the NFA, indicating it’s an essential step in gaining CFTC accreditation.
Those are credible reasons as to why DraftKings, Fanatics, and other gaming companies are registering with the NFA, but there’s more to the story. Prediction market firms aren’t hiding their sports ambitions. Earlier this week, Kalshi said it will offer football player props, sides, and totals, and some market observers believe it’s just a matter of time before those companies are offering parlays.
Gaming entities could be compelled to hasten their prediction market ambitions because on Wednesday, FanDuel fired the first shot when it announced an agreement with CME Group under which the two sides will make yes/no contracts linked to economic data and financial markets available to FanDuel customers.
PrizePicks, Underdog Filed with NFA, Too
Daily fantasy sports (DFS) giants PrizePicks and Underdog Fantasy also have filings with the NFA. Performance Predictions II, a limited liability corporation with ties to PrizePicks, is considered a pending member of the NFA. Principles for that entity include several high-level PrizePicks executives.
Underdog Fantasy, a direct competitor to PrizePicks, has two filings with the NFA. One is for an entity known as UDM LLC, which is angling for futures clearing merchant (FCM) and swaps approval — both of which are relevant to prediction markets operations.
A second Underdog-related NFA filing is for G&B Broker. An April filing for that entity indicates it’s seeking introducing broker and swap firm permissions.
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