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BFD Expert Voices - Private Credit

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ProphetX, a CFTC-designated sports prediction market, raised $35 million in new funding, CEO Dean Sisun tells Axios Pro exclusively.

The big picture: ProphetX aims to expand distribution and deepen liquidity beyond consumers by offering its exchange infrastructure to partners.

Zoom in: Parlay Capital and Data Point Capital led the financing, with participation from FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, the Operating Group and Sharp Alpha Advisors. 

Strategic investors include Chicago Trading Company Ventures, Belvedere Trading, Ematiq and principals at White Swan Data and Consolidated Trading. These backers give ProphetX market-making expertise as it tries to deepen liquidity.

State of play: ProphetX operates a consumer-facing peer-to-peer sports-betting market, but is also building a B2B business that sells its exchange infrastructure to other companies.

The company received CFTC designation as a contract market in June, giving it a federal path to operate nationally even as states and prediction-market operators clash over sports contracts.

Between the lines: The CFTC's support of prediction markets is giving companies like ProphetX a national alternative to state-by-state sportsbook licensing.

Yes, but: A bipartisan coalition of 37 state attorneys general has argued that prediction-market operators cannot use federal oversight to bypass state sports-betting laws.

How it works: Partners will be able to choose from ProphetX's sports contracts and arrange them for their customers. 

All orders feed into the company's shared liquidity pool, which should get deeper as more partners add trading volume.

ProphetX will share commissions with those partners, while continuing to operate its consumer-facing exchange.

Players Lounge is the first partner to go live, and the company says more are expected this summer and into the NFL season.

Context: Sisun and co-founder Jake Benzaquen started Prophet in 2018, first operating it as an exchange in the U.K.

It launched a peer-to-peer sports-betting business in New Jersey in 2022, and later moved to a sweepstakes model after failing to expand state by state.

Exclusive: ProphetX raises $35M for B2B sports prediction markets

The CFTC is giving an opening to sports prediction markets.

Animated illustration of a sports betting app on a phone with a football and a dollar sign.

ProphetX, a CFTC-designated sports prediction market, raised $35 million in new funding, CEO Dean Sisun tells Axios Pro exclusively.The big picture: ProphetX aims to expand distribution and deepen liquidity beyond consumers by offering its exchange infrastructure to partners.

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Exclusive: ProphetX raises $35M for B2B sports prediction markets

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