Sweepstakes Bettors Fliff, Onyx Odds Apply for U.S. Derivatives Licences
Fliff and Onyx Odds have filed to become federally regulated futures brokers, the latest sign sweepstakes operators are eyeing prediction markets.
This article was produced with AI assistance and edited by the ON360 newsroom.
Two U.S. sweepstakes-style sportsbooks, Fliff and Onyx Odds, have applied to become federally regulated futures brokers, according to National Futures Association (NFA) records cited by Gambling Insider. The filings, made through entities Fliff FCM LLC and Onyx Markets LLC on August 12, mark the companies’ pursuit of Futures Commission Merchant (FCM) status — a move that would give them a much deeper foothold in the fast-growing U.S. prediction market sector.
The applications come as sweepstakes gaming, which lets users play with virtual currency redeemable for cash prizes, faces mounting legal and legislative pressure across more than a dozen U.S. states. At the same time, prediction markets — event contracts traded under federal derivatives rules rather than state gambling law — have expanded rapidly, drawing scrutiny from the U.S. Commodity Futures Trading Commission (CFTC) and pushback from state regulators.
What FCM status would actually allow
An FCM is a federally regulated intermediary permitted to accept customer orders and funds for futures, options and swaps — comparable to a traditional stockbroker, but for derivatives. Under NFA rules, all registered FCMs must also become NFA members.
That status is broader than an “introducing broker” (IB) licence, which allows firms to take customer orders but not hold customer funds directly. IB registration has already become a common entry point for firms seeking exposure to prediction markets without running their own exchange.
Importantly, neither Fliff nor Onyx would be authorized to operate a prediction market exchange under the pending applications. Exchanges such as Kalshi operate as CFTC-designated contract markets, a separate and more heavily regulated category. An FCM instead serves as the customer-facing broker through which users trade contracts listed on those exchanges.
Onyx already has a presence in the space through Onyx Predictions, an existing NFA-registered introducing broker. Its new filing, via Onyx Markets, could allow the company to bring additional broker functions in-house rather than relying on third parties.
Part of a wider sweepstakes-to-prediction-markets shift
Fliff and Onyx join a growing list of operators with roots in sweepstakes gaming that are testing routes into federally regulated event contracts. Novig and ProphetX both applied for designation as CFTC contract markets in late 2025; the CFTC approved ProphetX first, with Novig following within a week in June.
Betr, which had expanded into sweepstakes casino products, took a different path by acquiring NFA-registered introducing broker Ascent Capital Management in May. MyPrize became the first sweepstakes operator to enter the sector in November 2025, partnering with Crypto.com to offer access to sports, political and crypto-related event contracts through Crypto.com’s federally regulated infrastructure.
Together, the moves illustrate how sweepstakes operators — squeezed by tightening state rules on dual-currency gaming — are hedging their bets by pursuing federal derivatives registrations, acquiring existing brokers, or partnering with established CFTC-regulated firms.
Why it matters for Canadian audiences
Sweepstakes-model gaming has limited legal footing in Canada, and Ontario’s regulated market operates under AGCO and iGaming Ontario oversight rather than the sweepstakes exemptions used in parts of the U.S. Still, the rapid U.S. pivot toward prediction markets is being closely watched by Canadian regulators and operators, given ongoing debate over whether such event-contract platforms function as unregulated sports betting.
Ontario bettors are reminded that only operators registered with iGaming Ontario are permitted to legally offer online gambling products in the province, and that regulated sites must provide responsible-gambling tools such as deposit limits and self-exclusion. Anyone concerned about their gambling can contact ConnexOntario at 1-866-531-2600 for free, confidential support.
Related: DraftKings’ Prediction Market Arm Files Nine Football Contracts With CFTC
Related: CFTC Tells Prediction Markets to Ditch Sportsbook-Style Odds Displays
Related: Kalshi Parlay Bettors Losing Far More Than Headline $294M Figure Suggests: Report