Former state-licensed sports betting operator Sporttrade is preparing to enter the prediction market industry.
- Sporttrade will operate an exchange and clearing venue while providing infrastructure for brokers, traders, and other market participants
- CEO Alexander Kane said the company was founded on the principles of sports market trading.
- Sporttrade exited five state-regulated sports betting markets in June.
The sports market technology company announced Tuesday that it had received Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) registrations from the Commodity Futures Trading Commission (CFTC), which regulates derivatives markets.
“Receiving our DCM and DCO registrations from the CFTC is a true full-circle moment for our company,” Sporttrade CEO Alexander Kane said in a statement. “We founded Sporttrade on the principle that sports markets deserve the same high-performance structure, tight pricing, and regulatory integrity as traditional financial markets.”
Sporttrade's move into prediction markets
Sporttrade previously offered sports betting in New Jersey, Arizona, Colorado, Iowa, and Virginia. One of the first companies to offer peer-to-peer sports contract trading, it exited those markets in June 2026 after applying in May to transition into the regulated prediction market industry.
The company’s platform has remained dormant since, but Sporttrade is currently accepting waitlist sign-ups on its website. It plans to roll out its exchange and clearing capabilities in phases, starting with select flow and liquidity providers.
Kane said Sporttrade’s ability to operate as both a clearing venue and an exchange allows it to control market structure, spreads, and real-time execution for sports event contracts, while improving execution for other brokers. Sporttrade said it is bringing on brokers that serve customers nationwide, including social sportsbook Fliff, which plans to route its users' trades through Sporttrade’s exchange once it receives regulatory approval.
Enjoying Covers content? Add us as a preferred source on your Google account“We are empowering broker partners with superior market quality while giving sophisticated traders the liquidity, transparency, and service they demand,” Kane said. “In addition to our exchange business, we're pleased to have begun clearing discussions with several exchanges who have understood Sporttrade to be a market leader on exchange and clearing technology for the past five years.”
Joining the competition
Sporttrade enters a crowded field that includes established prediction market sites such as Kalshi, Polymarket, FanDuel Predicts, and DraftKings Predictions.
When Sporttrade launched in 2022, the sports event contract market was far less developed than it is today. As CFTC-regulated exchanges such as Kalshi and Crypto.com expanded their sports event contract offerings, including moneylines, spreads, and totals, Sporttrade remained limited to the five states where it held sports betting licenses.
Behind its new business, Sporttrade plans to offer broker-first market infrastructure, clearing and settlement services, and lower costs for brokers.
“By uniting proven electronic market structure with sports markets, Sporttrade aims to offer tight spreads, deep liquidity, and cutting-edge market infrastructure to broker-intermediaries and sophisticated traders alike,” the company said. “Sporttrade is setting the institutional standard for the sports trading ecosystem.”
