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New York-headquartered ProphetX has raised $35 million to expand its prediction markets business, with the company saying the capital will fund product development, market liquidity, and growth of its B2B platform and partnerships.
The round was led by Parlay Capital and Data Point Capital. Other participants included FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, the Operating Group, and Sharp Alpha Advisors.
ProphetX said the raise comes after its recent nationwide launch and its approval from the Commodity Futures Trading Commission to operate as what it describes as America’s first federally regulated sports-native prediction market. The company entered the prediction market space in June after securing CFTC approval as both a Designated Contract Market and a Derivatives Clearing Organization.
CEO and co-founder Dean Sisun said the funding gives ProphetX resources to meet demand from both consumers and institutions participating in prediction markets. In separate comments, Parlay Capital CEO Greg Buonocore and Data Point Capital founder Scott Savitz said the investors see the company’s regulatory status and event-based market focus as key parts of its growth case.
For New York readers, the clearest local connection is that ProphetX is headquartered in the state. This is not a New York state-regulated online sportsbook or casino story, but it is a notable gaming-adjacent funding round involving a federally regulated operator based in New York.
The company also said it signed its first B2B deal last week with Players’ Lounge, a skill-based gaming platform where users compete for real money in titles including _Madden NFL_, _NBA 2K_, _Call of Duty_, and _Fortnite_. Players’ Lounge says it has processed more than $250 million in skill-based gaming wagers since launching in 2016.
What to watch next is whether ProphetX discloses more detail on the products, markets, or partnerships this new funding will support. Readers should also keep in mind that prediction markets operate under a different regulatory framework than traditional New York online sports betting or casino gaming.
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Source: As reported by gamingintelligence.com.
