Fliff and Onyx Move Closer to Prediction Markets With FCM Applications

Fliff and Onyx have taken another step towards the prediction market sector after filing applications to become Futures Commission Merchants (FCMs), signalling their intention to play a bigger role in this growing industry.

According to National Futures Association (NFA) records, Fliff FCM LLC and Onyx Markets LLC submitted applications on 12 August to register as FCMs, NFA members and swap firms. While the applications are still pending, they highlight how companies with roots in sweepstakes gaming are increasingly looking towards federally regulated prediction markets for future growth.

Looking Beyond Sweepstakes

The move comes as sweepstakes operators continue to face increased regulatory pressure across the United States, with several states introducing restrictions on dual currency gaming models.

Rather than launching their own prediction market exchanges, Fliff and Onyx are pursuing FCM registration, which would allow them to act as intermediaries by accepting customer orders and funds for derivatives trading. Exchanges such as Kalshi operate as designated contract markets (DCMs), while FCMs provide users with access to those markets without running the exchange itself.

Joining a Growing Trend

Fliff and Onyx are the latest companies to explore federally regulated prediction markets as interest in the sector continues to grow.

Operators including Novig, ProphetX, Betr and MyPrize have all taken different routes into the market, whether through regulatory approvals, acquisitions or strategic partnerships. The latest applications suggest Fliff and Onyx are following a similar path as they look to diversify beyond their existing products.

Onyx has already established a presence through Onyx Predictions, an NFA registered introducing broker, while Fliff has built a large audience through its social sportsbook platform. Becoming FCMs would give both companies greater flexibility as they expand into federally regulated event contracts.

Prediction Markets Continue to Attract New Entrants

The applications are another sign of how prediction markets are reshaping the wider gaming industry.

As regulatory scrutiny around sweepstakes gaming increases, more operators are exploring alternative business models that fall under the federal derivatives framework. Although approval is not guaranteed, Fliff and Onyx's latest move highlights the growing interest in prediction markets and the different ways companies are positioning themselves to enter the sector.

Stay tuned to UMG Gaming for the latest news, analysis and updates from the world of prediction markets, sports betting and iGaming.