ProphetX Sticks with Sweeps for Now as It Eyes CFTC Approval

Prophet X has announced that it won’t shut down its sweepstakes model yet, despite mounting pressure in the U.S. market. Why? Because it has its sights set on something bigger: becoming a fully regulated sports prediction market under the CFTC.

“It’ll be a decision when we ultimately achieve CFTC approval whether to shutter sweeps or not,” said co-founder Jake Benzaquen. “But that’s not a decision that we’ve made at this point.”

CFTC Move Could Change Everything

The company has filed to become a Designated Contract Market and Derivatives Clearing Organization under the Commodity Futures Trading Commission (CFTC). 

That’s the same route taken by platforms like Kalshi and Polymarket, bypassing state gambling regulators and unlocking nationwide access.

This could put ProphetX in a league with giants. DraftKings and FanDuel have both made moves toward CFTC-regulated markets in recent months.

Pressure Mounts as States Crack Down

ProphetX is watching the sweepstakes casino crackdown unfold fast.

Montana, Connecticut, California, and New Jersey have already rolled out new restrictions. Others like New York are waiting on governor sign-off. In the meantime, cease-and-desist orders keep piling up.

“There’s been a lot of movement to get rid of sweeps… It’s moved a lot quicker than we anticipated,” said Benzaquen.

Despite that, ProphetX isn’t ditching its sweepstakes platform just yet. The plan: keep operating and growing while pushing for federal approval.

Why CFTC Makes Sense

Benzaquen says prediction markets bring transparency, fairness, and better pricing to consumers.

And ProphetX has been building toward this all along from its UK launch to its U.S. expansion under a sweepstakes model.

“We’ve been operating a prediction market platform well before it was called that,” he said. “We’re just seeking the right regulatory framework to operate in for the long term.”

For now, ProphetX is live. And it’s playing both sides, sweeps for growth, CFTC for legitimacy.

References:

• News10 ABC
• YahooFinance