ProphetX raises $35M to scale sports-native prediction market
ProphetX raised $35 million in new funding, CEO Dean Sisun tells Axios. The round is backed by FDJ United Ventures. The CFTC-designated contract market and derivatives clearing organization describes itself as America's first federally regulated sports-native prediction market. It plans to use the capital to scale its prediction market and B2B platform operations.
ProphetX enters a field where vertical integration is becoming the norm. DraftKings and Underdog have both built or bought their own CFTC-regulated exchange stacks, cutting out white-label partners like Kalshi and Crypto.com. ProphetX's dual DCM structure lets it play both sides: it can list its own sports contracts and rent infrastructure to others. The $35 million buys it time to build volume before Congress acts on a bipartisan Senate bill that would ban sports event contracts outright.
Its sports-only focus is a concentrated bet. If the ban passes, ProphetX has no politics or biotech vertical to absorb the shock. If sports survive the legislative round, its dedicated identity may outcompete generalist platforms for fan engagement and media partnerships. The NFL season will test whether ProphetX can attract liquidity fast enough to matter.
ProphetX's funding round makes it the first new sports-native platform to close capital since DraftKings and Underdog completed vertical-integration moves that stripped white-label revenue from competitors.