Fliff and Onyx Odds Register as Futures Commission Merchants to Access Federally Regulated Prediction Markets

Fliff and Onyx Odds have registered with the National Futures Association as they seek a path from sweepstakes-based social sportsbooks into the prediction markets sector. NFA records show Fliff FCM LLC and Onyx Markets LLC each registered on Aug. 12, with applications pending to become Futures Commission Merchants (FCM), NFA members and swap firms. The filings arrive as regulatory pressure mounts on sweepstakes gaming across the U.S.

Lawmakers and regulators in over a dozen states have moved to restrict or prohibit dual-currency gaming in the past two years. Prediction markets, by contrast, have expanded rapidly under the federal derivatives framework. Sports event contracts remain at the center of a jurisdictional battle between the CFTC, operators and state gambling regulators, as reported by Gambling Insider.

FCM Registration Grants Intermediary Powers Without Exchange Authority

An FCM functions as a federally regulated intermediary that can accept customer orders for futures, options and swaps, as well as customer funds or other assets to support those transactions. This structure provides considerably more capabilities than an introducing broker, which can accept orders but not funds. All registered FCMs must become NFA members.

The pending registrations do not allow either company to operate a prediction market exchange. Exchanges operate as CFTC-designated contract markets, while an FCM serves as the customer-facing intermediary through which users trade contracts. Onyx Odds already operates Onyx Predictions as an NFA-registered introducing broker. The latest application could enable the company to internalize additional functions. Fliff operates as one of the best-known social sportsbooks that uses a sweepstakes model permitting redemption of virtual currency for cash prizes.

Multiple Regulatory Routes Define Sweepstakes Operators’ Market Entry

The filings position Fliff and Onyx Odds alongside a group of companies with sweepstakes roots that have entered or are preparing to enter prediction markets through varied channels. ProphetX and Novig applied for designation as designated contract markets in late 2025. The CFTC approved both within a week of each other in June. Betr acquired an NFA-registered introducing broker in May. MyPrize became the first sweepstakes operator to enter the space in November 2025 through a partnership with Crypto.com that provides access to sports, political, crypto and other event contracts.

These steps show sweepstakes-rooted operators testing several paths into the federally regulated event-contract market, from direct federal registrations to acquisitions and partnerships. The pattern reflects adaptation to an environment in which state actions have narrowed one growth lane while federal derivatives rules open another. Operators will continue to calibrate their structures to the precise limits and permissions each route affords.

Reporting: Gambling Insider

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.