Federally designated contract market and derivatives exchange ProphetX is bringing prediction markets to gamers through a deal with the skill-based gaming platform Players’ Lounge.
Key Takeaways
- Players’ Lounge users can now trade contracts on the NFL, NBA, and international soccer.
- ProphetX recently gained CFTC approval.
- Players’ Lounge has facilitated over $250 million in wagers since 2016.
The two companies announced the “strategic partnership” on Wednesday, allowing players of games like Madden NFL, NBA 2K, and Call of Duty to trade contracts on real professional sports.
"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,” Players’ Lounge CEO Austin Woolridge said in a statement. “We're excited to give our community a regulated, exchange-based way to trade on the games they care about most."
The prediction markets are currently available on the Players’ Lounge platform in applicable U.S. jurisdictions, the companies said. The offerings include game outcomes, player props, tournament brackets, and championship futures on the NFL, NBA, and international soccer.
The rollout comes less than two months before the start of the NFL regular season. Other sports contracts will be available on a rolling basis.
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Expanding into the space
ProphetX began offering regulated prediction markets after it was approved by the Commodity Futures Trading Commission last month. The company, formerly known as Prophet Exchange, launched as a peer-to-peer, state-regulated sports betting site in 2022.
The operator rebranded as a sweepstakes sportsbook in July 2024, expanding to 40 U.S. states. With Kalshi clearing the way for prediction market platforms in late 2024, and the rise of sports event contracts in early 2025, federally regulated trading platforms have exploded.
Kalshi and Polymarket are dominating the space, but DraftKings, FanDuel, Robinhood, Crypto.com, and other notable brands have also entered the industry over the last 18 months.
ProphetX became the first sports-native prediction market operator in the U.S., offering contract trading in every state.
“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 co-founder and CCO Jake Benzaquen said in a statement.
‘Genuinely rare’ platform
Players’ Lounge has millions of users who wager on their own performance playing video games like Fortnite or stake other players.
The company has expedited over $250 million in wagers since launching in 2016.
“Players' Lounge has built something genuinely rare: a platform where a new generation of sports fans already shows up, competes, and has real money on the line,” Benzaquen said. “That community deserves access to the most competitive, transparent markets on the planet — and that's exactly what ProphetX provides.”
