ProphetX and Players’ Lounge Launch CFTC-Regulated Sports Prediction Markets

ProphetX and Players’ Lounge have partnered to bring federally regulated sports prediction markets to Players’ Lounge’s community of competitive gamers. The integration lets Players’ Lounge users trade event contracts covering NFL games, NBA player props, tournament brackets, championship futures, and international soccer directly through ProphetX’s exchange.

The deal plugs a skill-based gaming platform with more than $250 million in processed wagers into a fast-growing corner of the sports wagering industry that operates under a different legal framework than traditional sportsbooks.

How the ProphetX Exchange Works

ProphetX operates as a Commodity Futures Trading Commission (CFTC)-regulated designated contract market (DCM) and derivatives clearing organization (DCO), a structure that separates it from state-licensed sportsbooks like DraftKings and FanDuel. Rather than a bookmaker setting a line, ProphetX functions as a peer-to-peer exchange where users buy and sell event contracts and the crowd determines the price.

“That community deserves access to the most competitive, transparent markets on the planet — and that’s exactly what ProphetX provides,” said ProphetX co-founder and chief commercial officer Jake Benzaquen. “This isn’t sports betting dressed up in new clothes. It’s a federal exchange where the crowd sets the price and every participant is on a level playing field.”

ProphetX received its dual CFTC registration as a DCM and DCO in June 2026, becoming what the company describes as the first sports-native, direct-clearing prediction market to operate under that federal framework. The dual designation lets ProphetX trade, clear, and settle its own event contracts in-house, including a proprietary Request for Quote mechanism that allows users to build multi-event combinations similar to a parlay.

Why Players’ Lounge Signed On

Players’ Lounge, which launched in 2016, built its business on skill-based wagering across titles like Madden NFL, NBA 2K, Call of Duty, and Fortnite. Adding a regulated prediction market gives its user base a new way to put sports knowledge to work alongside the head-to-head gaming contests the platform is known for.

“Prediction markets on ProphetX are a perfect fit for what Players’ Lounge is all about: putting your knowledge to work in a fair, skill-driven environment,” said Players’ Lounge CEO Austin Woolridge. “We’re excited to give our community a regulated, exchange-based way to trade on the games they care about most.”

Users need to complete Know Your Customer verification before trading, and access is currently limited to eligible users in supported states rather than a full nationwide rollout, consistent with how other CFTC-regulated exchanges have staged their launches. Anyone deciding where to actually place a wager can compare state rules on Hello Rookie’s state-by-state sports betting guide.

Part of a Bigger Prediction Market Wave

The companies pointed to Kalshi’s court victory establishing federal CFTC oversight over sports-related event contracts as a catalyst for the broader trend, along with a run of platforms — Robinhood, Coinbase, PrizePicks, and Webull among them — rolling out their own prediction market products in recent months. ProphetX itself has also drawn attention for launching just a week after its CFTC approval, timing its debut around a major international soccer tournament that generated heavy early trading volume.

That growth has put prediction markets on a collision course with the daily fantasy and sportsbook industries they increasingly resemble, and bettors weighing traditional markets can still check live NFL odds for comparison as the two models compete for the same audience heading into the fall.

ProphetX and Players’ Lounge said additional products and markets are planned ahead of the start of the NFL season, suggesting the current NFL, NBA, and soccer contract lineup is only the initial phase of the rollout.