By PredictQ Team // Updated: July 2026
On June 11, 2026, ProphetX became the first sports-native prediction exchange to win CFTC approval as both a Designated Contract Market and a Derivatives Clearing Organization. One week later, on June 18, it launched nationwide as a regulated real-money exchange, timed to the middle of the 2026 FIFA World Cup. If you read anything about ProphetX before June 2026, throw it out. The sweepstakes model, the dual-currency Prophet Points and Prophet Cash system, the “pending application” framing, all of it is gone.
What exists today is a federally regulated sports exchange available in 49 states (every state except Nevada), where you trade real dollars on sports event contracts against other users instead of betting against a house.
That puts ProphetX on the same regulatory tier as Kalshi, and in one specific way, above it. Kalshi covers everything from elections to weather. ProphetX built its entire exchange and clearinghouse for one thing: sports.
What ProphetX Is
ProphetX is a peer-to-peer sports exchange founded in 2018 by Dean Sisun (CEO) and Jake Benzaquen (CMO), headquartered in New York City. You trade sports outcomes directly against other users. There is no bookmaker on the other side of your position, no house line, and no vig baked into the price. The market sets the price.
The company’s path here took three regulatory lives. ProphetX started as a state-licensed sports betting exchange in New Jersey, shut that down in mid-2025, and ran a sweepstakes-based product to reach more states while it pursued something bigger. In November 2025 it filed CFTC applications for dual DCM and DCO registration. Roughly seven months later, the CFTC said yes.
The snapshot as of July 2026:
- Founded: 2018, New York City
- CEO and Co-Founder: Dean Sisun
- CMO and Co-Founder: Jake Benzaquen
- Regulatory status: CFTC-approved DCM and DCO (June 11, 2026)
- Launched as a regulated exchange: June 18, 2026
- Available: 49 states (all except Nevada)
- Age requirement: 19+, with 21+ applied in some states at verification
- Focus: Sports only. No politics, economics, crypto, or culture markets.
Why the DCM Plus DCO Combination Matters
Most prediction market brands you know are middlemen. Robinhood, Underdog Predict, and Coinbase all operate as brokers routing your trades to somebody else’s exchange. ProphetX owns the whole stack. The DCM is the exchange where trades match. The DCO is the clearinghouse that guarantees and settles them. ProphetX runs both in-house.
For traders, vertical integration means the platform controls its own listings, its own settlement, and its own market structure instead of inheriting another exchange’s catalog and rules. It also means customer funds sit under the CFTC’s clearing regime rather than a sweepstakes company’s internal ledger. Kalshi took years to assemble the same structure. ProphetX launched with it on day one, and it’s the only sports-only operation in the country that has it.
The Exchange Model
Trading on ProphetX works the way exchanges have always worked. You browse open orders from other users and take a price you like, or you post your own price and wait for someone to take it. When two users agree, the trade matches and the clearinghouse locks it in.
The pitch is pricing. A sportsbook charges you -110 on both sides of a coin flip, a built-in margin of roughly 4.5% before you’ve made a single decision. On a peer-to-peer exchange there is no house margin to pay. ProphetX has claimed users can find odds up to 20% better than sportsbook lines on mainlines, props, and futures. Treat that number as marketing, but the direction is right: exchange prices beat book prices when liquidity is there.
That’s the catch, and it’s the honest one. Exchanges need two sides. NFL, NBA, and World Cup markets have real depth. A Tuesday-night mid-major total might not. Thin books mean wide spreads, and wide spreads eat the pricing advantage. Judge ProphetX market by market, not by the brochure.
The RFQ Mechanism
The most interesting piece of ProphetX’s design is its proprietary Request for Quote system for multi-leg combos. Instead of accepting a pre-priced parlay from a book, you construct the combination you want and counterparties, including market makers, bid to price it. You take the best quote or you don’t.
Benzaquen has called it a fundamental innovation, and for once the founder-speak holds up. Parlays are the most profitable product sportsbooks have because the margin compounds across legs and you can’t see it. An RFQ puts the multi-leg price in the open and makes people compete for your order. Nobody else in the US market offers that structure.
Markets Available
Coverage centers on major US sports:
- NFL: game lines, player props, futures (Super Bowl, MVP)
- NBA: game markets and props
- MLB and NHL: game markets
- NCAA football and basketball: games and futures
- Soccer: including 2026 World Cup markets, which anchored the launch
- UFC, MMA, golf: additional coverage
You’ll find moneylines, spreads, totals, props, futures, and multi-leg combos through the RFQ system. What you will never find is a politics market or a CPI contract. Sports-only is the whole identity.
Fees
ProphetX doesn’t bake margin into prices; the exchange makes money on trading fees. The company hasn’t published a fee schedule we’re comfortable quoting a month into the regulated launch, and the old sweepstakes-era “1-3% on winnings” numbers no longer apply. Check the current schedule in the app before sizing up. Whatever the final numbers settle at, an explicit fee on an exchange price is a better deal than 4.5% of silent vig on a book line.
Welcome Bonus
The current new-user offer is Trade $10, Get $20. Place $10 in trades and ProphetX credits a $20 bonus, win or lose, with a 14-day window to use it. That’s a 200% return on the qualifying action, which beats Kalshi’s Trade $10, Get $10 on the same behavior.
The old sweepstakes offer, the 20% purchase match up to $100 in Prophet Cash, is dead. Prophet Cash no longer exists. If you see a site still advertising it, that page hasn’t been updated since spring.
Pros
- Federally regulated: CFTC-approved DCM and DCO as of June 11, 2026
- The only sports-native regulated exchange and clearinghouse in the US
- Live in 49 states, everywhere but Nevada
- Real-money trading, no dual-currency mechanics to decode
- Peer-to-peer pricing with no house vig
- RFQ system for user-priced multi-leg combos
- Trade $10, Get $20 welcome bonus, credited win or lose
- Founding team that has run a regulated exchange before (New Jersey)
Cons
- Sports only; traders who want politics or economics need Kalshi or Polymarket
- Liquidity is still building in markets beyond the majors
- No published fee schedule we can quote yet; verify in-app
- 19+ minimum, 21+ in some states, higher than the 18+ common elsewhere
- Brand-new as a regulated venue, launched June 18, 2026, so track record is short
- Not available in Nevada
Who Should Trade Here
Sports bettors first. If you’ve been laying -110 at a sportsbook, or worse, getting limited for winning, a regulated exchange where the market sets the price and nobody bans you for being sharp is a structural upgrade. Exchanges don’t cut winners’ limits. There’s no trader on the other side deciding you’re too good to keep around.
It’s also the obvious home for anyone who wanted Kalshi’s regulatory protection but only ever traded the sports tab. ProphetX gives you the same CFTC framework with a product built entirely around the thing you actually trade.
If you want breadth, elections, Fed decisions, culture markets, go to Kalshi or Polymarket. ProphetX will never be that platform, on purpose.
The closest comparison is Novig, the other sports exchange that spent 2025 in sweepstakes mode. Novig won its own CFTC designation on June 16, 2026, five days after ProphetX, but its regulated launch is still pending, expected by the end of summer. For now, ProphetX is the only sports-native regulated exchange you can actually trade on.
Bottom Line
ProphetX pulled off the hardest move in this industry: it went from sweepstakes operator to fully approved federal exchange and clearinghouse in about seven months, then launched into a World Cup summer a week after getting the nod. The product is focused, the market structure is legitimate, and the RFQ combo system is genuinely new.
The open questions are the ones every young exchange faces: liquidity depth outside marquee events and a fee schedule that’s still settling. Neither is a reason to stay away. Sports traders finally have a federally regulated exchange built for them, and there’s exactly one of it. You can sign up HERE.
Disclosures: PredictQ may receive compensation when readers sign up for platforms through links on this page. Information accurate as of July 2026. ProphetX is a CFTC-approved Designated Contract Market and Derivatives Clearing Organization and launched as a regulated real-money exchange on June 18, 2026. Trading event contracts involves risk, and you can lose money. This content is for informational purposes only and does not constitute financial, legal, or investment advice. Must be 19 or older (21+ in some states). If you or someone you know has a gambling problem, call 1-800-GAMBLER.