ProphetX has applied to the U.S. Commodity Futures Trading Commission (CFTC) to enter the bustling world of prediction markets.
The brand, formerly operating as Prophet Exchange and known for its sweepstakes model across dozens of states, had investors including MIXI and Sharp Alpha.
ProphetX enters prediction market fray
In a post across social media, Dean Sisun, co-founder and CEO of ProphetX, announced the application.
Big day at ProphetX. 📈
We’ve officially filed with the @CFTC to become a Designated Contract Market and Derivatives Clearing Organization.
The first step toward launching a regulated, sports-native prediction market in the U.S.
Here’s what that means👇 https://t.co/SUWoy0cAUz pic.twitter.com/JhWsKiznDH
— ProphetX (@PlayProphetX) November 10, 2025
“Very exciting news, we’ve just officially announced our CFTC applications to become a Designated Contract Market (DCM), and a Derivatives Clearing Organization (DCO).”
The CFTC regulates all of the outcomes markets operating in the United States and has been dragged into state-to-state legal battles about the jurisdiction of federal or local government rules.
Sisun didn’t expect ProphetX’s entry into the predictions market game to be anytime soon, as he said the inner workings of the approval would go into the following year. At the time of writing, the CFTC has not yet approved the application for DCM or DCO status, though the review is underway.
“We’ll be working with the CFTC and its staff for this year and into 2026, as we bring our regulated sports prediction market nationwide, to 50 states.”
As we reported, sweepstakes and their viability have been challenged across multiple states, but most notably in California and New York, where the sagas have been the most significant. ProphetX has weathered that regulatory storm and has deep connections to the state route for approval, which could prove beneficial in handling the red tape.
“This has been a grind for us; we’ve worked for 7 years to bring our mission to all 50 states. Starting in the UK, under the UKGC, then to New Jersey under the DG, and then through a sweepstakes model,” concluded Sisun.
Jake Benzaquen, the other ProphetX co-founder, spoke via a phone interview to Sportico about the company entering the predictions space.
He confidently said, “We believe that our underlying model and technology and liquidity that we have in place are basically ready to be operated under CFTC oversight.”
Prediction markets are packed with competition
Kalshi and Polymarket bring billion-dollar valuations to the prediction market space, which ProphetX will have to contend with.
There is also the emergence of companies like Crypto.com and a host of sports betting companies firing up their own outcome wagering models.
So the space is relatively crowded with competitors, but Benzaquen, Sisun, and ProphetX hope their long journey and established backers will help.
“That’s (the decision) obviously ultimately up for the CFTC to decide. But the way that we built our product, and the institutional-grade liquidity that we have on the platform, we feel is ready to go and plug and play,” concluded Benzaquen.
Featured image: ProphetX
