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Fliff and Onyx Odds are preparing to expand into prediction markets as companies connected to the sweepstakes gaming sector look for new opportunities within the federal derivatives framework.
NFA records show Fliff FCM LLC and Onyx Markets LLC submitted registrations on August 12 for Futures Commission Merchant (FCM) status, NFA membership and swap-firm registration. The applications remain pending and indicate that both companies are seeking a role in federally regulated event contracts.
The filings follow a wider movement among gaming operators that previously focused on sweepstakes products. Companies including Novig, ProphetX, Betr and MyPrize have already entered the prediction market space through different regulatory strategies.
Prediction market exchanges such as Kalshi operate as Designated Contract Markets (DCMs) under the Commodity Futures Trading Commission (CFTC) framework. FCMs can provide customers with access to listed contracts and handle related transactions.
The distinction means the current applications alone do not confirm that either company will launch its own exchange. However, the filings show that both businesses are seeking additional involvement in the event-contract market.
Onyx has already established a connection with prediction markets through Onyx Predictions, which operates as an NFA-registered Introducing Broker. The new Onyx Markets application could allow the company to take on additional functions internally.
Fliff’s application follows the company’s development as a social sportsbook using a sweepstakes structure. The company has promoted sports prediction games through virtual currencies, allowing users to participate without traditional sportsbook accounts.
Sweepstakes platforms expanded significantly after the pandemic, offering casino-style games and sports-related products through dual-currency systems. In recent years, regulators and lawmakers in several states have introduced restrictions affecting these business models.
Fliff has already reduced the availability of its sweepstakes products in multiple states. By the end of July, the company excluded 20 states from its sweepstakes offerings and added Iowa, Indiana and Maine after those states adopted measures targeting dual-currency gaming.
Several other operators have also withdrawn from restricted states. VGW, Modo, Stake and Pulsz were among companies that exited certain markets after new laws took effect.
Some businesses have moved away from sweepstakes gaming completely. Money Factory and CoinFrenzy announced closures as regulatory pressure increased.
For Fliff and other operators, prediction markets represent a different regulatory pathway. The sector has grown rapidly as companies attempt to offer sports-related contracts through federally supervised structures.
Fliff and Onyx Odds are preparing to expand into prediction markets as companies connected to the sweepstakes gaming sector look for new opportunities within the federal derivatives framework.
NFA records show Fliff FCM LLC and Onyx Markets LLC submitted registrations on August 12 for Futures Commission Merchant (FCM) status, NFA membership and swap-firm registration. The applications remain pending and indicate that both companies are seeking a role in federally regulated event contracts.
The filings follow a wider movement among gaming operators that previously focused on sweepstakes products. Companies including Novig, ProphetX, Betr and MyPrize have already entered the prediction market space through different regulatory strategies.
Federal Registration Opens A New Route For Operators
An FCM registration would allow Fliff and Onyx to operate as intermediaries for futures, options and swap transactions. The designation does not allow a company to operate its own prediction market exchange.Prediction market exchanges such as Kalshi operate as Designated Contract Markets (DCMs) under the Commodity Futures Trading Commission (CFTC) framework. FCMs can provide customers with access to listed contracts and handle related transactions.
The distinction means the current applications alone do not confirm that either company will launch its own exchange. However, the filings show that both businesses are seeking additional involvement in the event-contract market.
Onyx has already established a connection with prediction markets through Onyx Predictions, which operates as an NFA-registered Introducing Broker. The new Onyx Markets application could allow the company to take on additional functions internally.
Fliff’s application follows the company’s development as a social sportsbook using a sweepstakes structure. The company has promoted sports prediction games through virtual currencies, allowing users to participate without traditional sportsbook accounts.
Sweepstakes Industry Faces Growing Regulatory Challenges
The shift toward prediction markets comes during increased scrutiny of sweepstakes gaming in the United States.Sweepstakes platforms expanded significantly after the pandemic, offering casino-style games and sports-related products through dual-currency systems. In recent years, regulators and lawmakers in several states have introduced restrictions affecting these business models.
Fliff has already reduced the availability of its sweepstakes products in multiple states. By the end of July, the company excluded 20 states from its sweepstakes offerings and added Iowa, Indiana and Maine after those states adopted measures targeting dual-currency gaming.
Several other operators have also withdrawn from restricted states. VGW, Modo, Stake and Pulsz were among companies that exited certain markets after new laws took effect.
Some businesses have moved away from sweepstakes gaming completely. Money Factory and CoinFrenzy announced closures as regulatory pressure increased.
For Fliff and other operators, prediction markets represent a different regulatory pathway. The sector has grown rapidly as companies attempt to offer sports-related contracts through federally supervised structures.
