Key facts
- Fanatics is acquiring Water Street Labs and CX Clearinghouse from BGC Group.
- The acquisition provides Fanatics with a federally regulated exchange and clearinghouse.
- Fanatics aims to expand its prediction markets business with this acquisition.
- The company plans to develop new market data products with BGC Group.
American sports company Fanatics is expanding into the prediction markets sector through the acquisition of Water Street Labs and CX Clearinghouse from BGC Group. The deal, announced Monday, gives Fanatics ownership of a federally regulated exchange and clearinghouse, enabling the company to launch and settle its own prediction market contracts. Financial terms of the acquisition were not disclosed.
This move allows Fanatics greater control over its product offerings and the speed at which new markets can be introduced. In addition to launching its own prediction markets, Fanatics and BGC Group plan to collaborate on developing new market data products that integrate prediction market activity with traditional financial market data.