Prospect Markets signs definitive deal with Crypto.com for U.S. sports prediction platform

Prospect Markets signed a definitive agreement on September 1, 2026, with Crypto.com’s U.S. derivatives business and OG Prediction Markets to launch a regulated, sports-focused prediction market platform for American customers.

The deal replaces a non-binding letter of intent signed in July and positions the Canadian-listed company for a third-quarter launch ahead of the NFL and NBA seasons.

Prospect locks in regulated U.S. market access

Under the agreement, Prospect Brokerage USA LLC, an indirect wholly owned subsidiary of Prospect Markets, will distribute event contracts offered through OG.com and Crypto.com | Derivatives North America, known as CDNA.

Prospect Brokerage will operate as a Commodity Futures Trading Commission-registered introducing broker, while customers will access contracts through the existing Crypto.com derivatives infrastructure. Foris DAX FCM LLC, operating as OG Broker, will provide the futures commission merchant relationship.

That structure is important because CDNA provides the exchange and clearing infrastructure rather than Prospect having to establish those operations from scratch.

The CFTC recognizes event contracts as derivatives traded on regulated markets and has been actively developing its approach to the rapidly expanding sector. In March, the agency issued guidance reminding designated contract markets of their obligations when listing event contracts, including sports-related products.

Prospect founder and CEO Johnny Chen said the agreement represents a major milestone for the company.

“We intend to be live for sports fans ahead of the upcoming NFL and NBA seasons,” Chen said.

Crypto.com Chief Legal Officer Steve Humenik similarly described the agreement as an important step toward expanding regulated event-based trading in the United States.

“Formalizing this definitive agreement with Prospect is a major step in expanding access to fully regulated, event-based prediction markets across the U.S.,” Humenik said.

Sports are powering the market’s explosive growth

Prospect is entering the sector at a time when sports have become a major driver of prediction markets activity.

The 2026 FIFA World Cup provided a particularly powerful catalyst. Bernstein described the tournament as a major growth event for the industry, projecting billions of dollars in additional consumer trading volume.

The attraction is straightforward: sports provide clearly defined outcomes, enormous audiences and frequent events. Users can trade contracts tied to whether a team wins, whether a game reaches a particular score or whether specific player or tournament outcomes occur.

The CFTC’s own market data shows how quickly sports-related event contracts are expanding. Its certified-products listings include contracts covering basketball, hockey, soccer, tennis and other sporting events.

That growth has helped push prediction markets beyond their earlier reputation as niche platforms. Bernstein analysts led by Gautam Chhugani argue that the sector is evolving into broader “information markets,” with sports acting as a gateway to contracts covering economic, political, corporate and other real-world events.

For Prospect, the strategy is therefore bigger than simply allowing customers to trade on sports. The company is attempting to establish a distribution business around regulated event contracts while demand is accelerating.

Crypto.com adds another distribution channel

The agreement also strengthens Crypto.com’s position in the increasingly competitive U.S. event-contract market.

Crypto.com launched its OG prediction-market experience earlier in 2026, giving users access to contracts connected to sports, financial markets and other events through its U.S. derivatives infrastructure. The Prospect agreement effectively adds another customer-facing distribution channel to that ecosystem.

That approach is becoming increasingly important as financial and trading companies seek exposure to prediction markets without necessarily operating their own designated contract markets.

Bernstein expects distribution partnerships to be one of the major forces behind the sector’s expansion. Its forecast calls for annual trading volume to rise from about $51 billion in 2025 to $240 billion this year and eventually reach $1 trillion by 2030.

The projected growth has attracted major financial platforms, with companies increasingly treating event contracts as a new trading category rather than a niche betting product.

For Prospect, the immediate opportunity is sports. The longer-term prize could be a much broader market if consumers and institutions begin using event contracts to express views or manage exposure to real-world outcomes.

Regulatory battle could shape Prospect’s launch

The growth of prediction markets is unfolding alongside an increasingly complicated U.S. regulatory fight.

The CFTC has signaled support for innovation within its derivatives framework while simultaneously scrutinizing contracts that may involve gaming or other activities restricted under federal law. In June, the agency proposed a framework for evaluating event contracts involving activities such as gaming and other enumerated categories. Chairman Michael S. Selig said the CFTC wanted to protect market integrity without blocking responsible innovation.

State regulators, however, have challenged the idea that federally regulated event contracts should automatically escape state gambling laws.

That dispute intensified in August when a federal appeals court ruled that Nevada could regulate Kalshi’s sports-related contracts under state gaming laws, rejecting the argument that federal commodities law preempted Nevada’s authority. The ruling conflicts with a separate decision involving New Jersey and could ultimately push the issue toward the U.S. Supreme Court.

That legal uncertainty will be a key factor for Prospect as it prepares to launch.

Still, the company is betting that the combination of regulated infrastructure, sports demand and mainstream distribution can establish a foothold in a market Bernstein believes could reach $1 trillion in annual volume by 2030.

For now, Prospect’s target is more immediate: get its U.S. sports platform live before the NFL and NBA seasons and turn a fast-growing market opportunity into a new revenue stream.