Fliff and Onyx Odds are joining a growing number of companies with origins in sweepstakes that are exploring opportunities in the rapidly expanding event contract market.
As regulatory scrutiny intensifies on sweepstakes gaming across the United States, both companies are looking towards the federal derivatives framework as a promising avenue for future growth. Records from the National Futures Association (NFA) indicate that Fliff FCM LLC and Onyx Markets LLC registered with the NFA on August 12, with their applications pending to become Futures Commission Merchants (FCM), NFA members, and swap firms.
This move signifies a potential shift towards prediction markets for operators traditionally rooted in sweepstakes sports gaming. Fliff and Onyx Odds could follow in the footsteps of companies like Novig, ProphetX, Betr, and MyPrize, which have either entered or are preparing to enter the prediction market sector through various regulatory pathways.
Since the pandemic, sweepstakes gaming has rapidly emerged as one of the fastest-growing segments in the U.S. gambling industry. However, in the last two years, this model has faced mounting pressure as lawmakers and regulators in over a dozen states have sought to limit or ban dual-currency gaming.
In contrast, prediction markets have experienced swift expansion under the federal derivatives framework, although sports event contracts remain embroiled in a jurisdictional dispute involving the CFTC, operators, and state gambling regulators.
It is important to note that registering as an FCM does not automatically classify Fliff or Onyx as prediction market operators. An FCM acts as a federally regulated intermediary that can accept customer orders for futures, options, and swaps, as well as manage customer funds or other assets related to those transactions. FCMs function similarly to traditional stockbrokers, but specifically for derivatives markets.
The NFA mandates that all registered FCMs become members of the association, which would enhance the operational capabilities of Fliff and Onyx beyond those of an introducing broker (IB). While IBs can accept customer orders, they cannot manage customer funds. Registration as an IB has also become a pathway for companies aiming to access prediction markets without running their own exchange.
However, the pending registrations do not permit either company to operate a prediction market exchange. Exchanges like Kalshi function as CFTC-designated contract markets (DCMs), while an FCM serves as the customer-facing intermediary for trading contracts.
Nonetheless, these applications indicate that both companies are pursuing a more significant presence in the federally regulated event-contract market.
Onyx has already made strides in this area with Onyx Predictions, which operates as an NFA-registered IB. The latest application through Onyx Markets could enable the company to internalize additional functions.
Fliff, recognized as one of the leading social sportsbooks, employs a sweepstakes model that allows users to exchange virtual currency for cash prizes.
The initiatives taken by Fliff and Onyx suggest that companies with a history in sweepstakes are increasingly viewing federally regulated event contracts as the next significant growth opportunity in the industry.
ProphetX and Novig serve as prime examples of this trend. Both sought designation as DCMs in late 2025, with ProphetX receiving approval first, followed by Novig within a week in June.
Other operators have chosen different strategies. Betr, which has expanded into sweepstakes casino gaming, acquired the NFA-registered introducing broker Ascent Capital Management in May.
MyPrize made history as the first sweepstakes operator to enter this space in November 2025 through a collaboration with Crypto.com, gaining access to sports, political, crypto, and other event contracts via Crypto.com’s federally regulated infrastructure.
These developments highlight how both former and current sweepstakes operators are exploring various pathways into prediction markets, whether through obtaining federal registrations, acquiring brokers, or forming partnerships.