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.
More Gaming Companies Enter Prediction Markets
Fliff and Onyx are joining a group of companies testing different approaches to prediction markets.
According to DeFi Rate, ProphetX and Novig pursued exchange-based models by seeking CFTC approval as Designated Contract Markets. Betr entered the sector by acquiring NFA-registered Introducing Broker Ascent Capital Management.
MyPrize became one of the first sweepstakes operators to enter prediction markets through a partnership with Crypto.com. The agreement provided access to sports, political, cryptocurrency and other event contracts through Crypto.com’s regulated infrastructure.
Onyx has also moved through partnerships, including a relationship with Payward, the parent company of Kraken and NinjaTrader. The company announced a $20 million Series A funding round supported by Payward, giving Onyx a valuation of $220 million. The partnership included plans to use Payward’s U.S. derivatives infrastructure for prediction market products.
Fliff Builds Toward A New Sports Market
Fliff’s potential move into prediction markets follows its continued focus on sports engagement products.
The company describes itself as a social sportsbook, offering free-play sports predictions through its platform. Fliff also operates Sidepot Casino, a sweepstakes casino brand, and previously expanded into sports-related products such as Fliff Pick’Em.
When Fliff launched its social sportsbook, CEO Matt Ricci said the company aimed to create a product that captured interest in sports betting while reaching a wider audience.
Prediction markets have attracted increased attention among sports-focused companies. Trading volumes on platforms such as Kalshi increased significantly during major sporting events, with further growth expected around major football competitions.
Other industry figures have argued that the prediction market sector remains large enough for multiple operators. Dr. Laila Mintas, former CEO of PlayUp in the United States and current CEO of 365predictions, said the market opportunity could support several companies.
“In sports betting, nobody ever quoted numbers as we see in the prediction market space. I think the last numbers I have seen quoted as a market size are $1 trillion, which is big enough for everybody.”