ProphetX raises $35m to expand sports prediction exchange
ProphetX has raised $35 million to expand its federally regulated sports prediction exchange and business-to-business platform, the funding announced July 28. The company previously partnered with Players' Lounge on July 24 to integrate event-contract trading into the competitive gaming platform.
ProphetX is building dual growth tracks while Kalshi and Polymarket absorb political fire. The fresh capital lets ProphetX scale its consumer exchange and white-label partnerships like the Players' Lounge deal at the same moment Congress weighs banning sports event contracts outright. Fanatics, DraftKings, and Underdog are buying full regulatory stacks to own their infrastructure.
ProphetX is betting the opposite direction: sell the rails to gaming platforms that lack them. The strategy works only if federal law leaves room for sports contracts at all. A ban would vaporize ProphetX's core vertical before its B2B client list matures. The funding buys runway to prove the model before November.