Fliff, Onyx Seek FCM Registration in Pivot From Sweeps to Prediction Markets
The social sportsbooks join a growing group of companies with sweepstakes roots pursuing different routes into the fast-growing event contract sector.
As regulatory pressure mounts on sweepstakes gaming across the U.S., Fliff and Onyx Odds are turning toward the federal derivatives framework as a potential new avenue for growth. National Futures Association (NFA) records show Fliff FCM LLC and Onyx Markets LLC each registered with the organization on Aug. 12, with applications pending to become Futures Commission Merchants (FCM), NFA members and swap firms.
The applications mark another potential move into prediction markets by operators with roots in sweepstakes-based sports gaming. Fliff and Onyx Odds could follow Novig, ProphetX, Betr and MyPrize, which have entered or are preparing to enter the prediction market sector through different regulatory routes.
Sweepstakes gaming became one of the fastest-growing segments of the U.S. gambling industry after the pandemic. In the past two years, however, the model has come under increasing pressure as lawmakers and regulators in over a dozen states have moved to restrict or prohibit dual-currency gaming.
Prediction markets, meanwhile, have expanded rapidly under the federal derivatives framework. At the same time, sports event contracts remain at the center of an escalating jurisdictional battle between the CFTC, operators and state gambling regulators.
FCM Registration Does Not Make Fliff, Onyx Prediction Market Operators
An FCM is a federally regulated intermediary that can accept customer orders for futures, options and swaps, as well as customer funds or other assets to support those transactions. FCMs are similar to traditional stockbrokers, but for derivatives markets.
According to the NFA, all registered FCMs must become NFA members.
The registration would therefore give Fliff and Onyx considerably more capabilities than an introducing broker (IB). IB can accept customer orders, but not customer funds. IB registration has also become an entry route for companies seeking access to prediction markets without operating their own exchange.
The pending registrations do not allow either company to operate a prediction market exchange. Exchanges such as Kalshi operate as CFTC-designated contract markets (DCMs), while an FCM can serve as the customer-facing intermediary through which users can trade contracts.
Still, the applications suggest both companies are pursuing deeper entry into the federally regulated event-contract market.
Onyx has already taken steps into the space through Onyx Predictions, which operates as an NFA-registered IB. Its latest application via Onyx Markets could allow the company to bring additional functions in-house.
Fliff, meanwhile, is among the best-known social sportsbooks, which use a sweepstakes model that allows users to redeem virtual currency for cash prizes.
Prediction Markets Emerge as Next Frontier for Sweepstakes Operators
The moves by Fliff and Onyx suggest companies that previously embraced sweepstakes may increasingly view federally regulated event contracts as the industry’s next growth opportunity.
ProphetX and Novig are the clearest examples. Both applied for designation as DCMs in late 2025, and the CFTC approved ProphetX first, with Novig approved within a week of each other in June.
Other operators have taken different routes. Betr, which expanded into sweepstakes casino gaming, acquired NFA-registered introducing broker Ascent Capital Management in May.
MyPrize, meanwhile, became the first sweepstakes operator to enter the space in November 2025 through a partnership with Crypto.com. The deal gives MyPrize access to sports, political, crypto, and other event contracts through Crypto.com’s federally regulated infrastructure.
Together, the moves show how former and current sweepstakes operators are testing several paths into prediction markets, from obtaining their own federal registrations to acquiring brokers and partnering with established CFTC-regulated firms.
Also read: Sports-First Startups Look to Compete in Trillion-Dollar Prediction Market Industry
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