Published on: August 21, 2025, 11:28 AM.
Updated on: August 21, 2025, 11:54 AM.
- NFA registry suggests DraftKings may reassess entry into prediction markets
- Fanatics has also submitted a filing with the NFA
- PrizePicks and Underdog Fantasy are considering NFA membership
Recent submissions to the National Futures Association (NFA) imply that DraftKings (NASDAQ: DKNG) alongside various notable gaming entities may be seeking registration with the NFA, potentially indicating a move towards the prediction markets sector.
In the past, DraftKings was pending membership with the NFA, but withdrew its application earlier this year. Notably, a primary filing for Gus III LLC was approved by the NFA on June 25, listing a DraftKings address and naming co-founders Paul Liberman and Jason Robins, who is also the CEO, among the key players.
DraftKings did not provide a specific reason for withdrawing its prior NFA application. Recently, the potential prediction market aspirations of the sportsbook operator have been linked to acquisition speculation. This NFA filing could indicate that the gaming company is exploring various pathways for involvement in prediction markets while keeping its options flexible.
Additionally, Fanatics Betting & Gaming is another prominent wagering company that has registered with the NFA. A filing from May by an entity named Morton St. Trading OpCo may suggest that privately held Fanatics is contemplating prediction market ventures, possibly on an international scale, especially since the filing was updated on July 31 to request foreign currency broker status. Morton Street is where Fanatics’ New York office is situated, and the executives listed in the filing are top-ranking officials in the firm’s gaming division.
Importance of NFA Registration
The registrations by gaming companies with the NFA are significant as the NFA is recognized as a “registered futures association” by the Commodity Futures Trading Commission (CFTC), the regulatory body overseeing operators of yes/no exchanges.
According to the Commodity Exchange Act (CEA), exchanges that provide derivatives and futures contracts to clients are required to register with the CFTC. Almost all CFTC members are affiliated with the NFA, highlighting its crucial role in obtaining CFTC accreditation.
While there are solid reasons for DraftKings, Fanatics, and other companies in the gaming industry to register with the NFA, there is more to consider. Prediction market firms are openly pursuing sports-related opportunities. Recently, Kalshi announced plans to offer betting on football player props, sides, and totals, leading some market analysts to believe it’s only a matter of time before these firms introduce parlays.
Gaming entities might feel pressured to accelerate their prediction market plans, especially after FanDuel made an announcement regarding a partnership with CME Group, intending to offer yes/no contracts tied to economic data and financial markets for FanDuel customers.
Filings from PrizePicks and Underdog Fantasy
Daily fantasy sports powerhouses PrizePicks and Underdog Fantasy have also registered with the NFA. A limited liability company linked to PrizePicks, Performance Predictions II, is recognized as a pending NFA member. The principles associated with that entity include numerous senior executives from PrizePicks.
Underdog Fantasy, a direct competitor to PrizePicks, has submitted two filings with the NFA. One filing pertains to UDM LLC, which is pursuing futures clearing merchant (FCM) and swaps approval, both integral for prediction markets operations.
A second NFA-related filing from Underdog is for G&B Broker, with an April application indicating a pursuit for permissions as an introducing broker and swap firm.