Updated October 2026

This guide is for general information and is not legal advice. Confirm your plan with your own gaming counsel before you launch.

Short answer: An operator that already runs an iGaming brand can add prediction markets by building a customer-facing product on top of a CFTC-registered exchange, usually through a registered broker or a partner exchange. Settle the regulatory route and your state exposure first, because courts and state regulators currently disagree on sports event contracts. The app, payments and support can run on a white-label stack.

What does adding a prediction market actually involve?

A prediction market lists event contracts, and customers buy and sell positions on the outcome. The contracts are not bets against your odds. In its explainer, the CFTC says prediction market exchanges provide a platform for trading and are not competing against the customer (CFTC, Understanding Prediction Markets and Event Contracts).

That changes your role. A sportsbook sets prices and carries risk. A prediction market product is mainly a customer experience on top of an exchange, with a broker handling orders. NextPredict describes the pattern the same way: in each case the operator provides the customer-facing app and the exchange handles trading and settlement.

Which regulator decides if you can offer it?

Two layers apply, and they currently disagree on sports contracts.

• Federal: the CFTC proposed rule states that a prediction market offering swaps or futures contracts to the general public must register with the CFTC as a designated contract market (CFTC proposed rule 2026-05105). A staff advisory dated March 12, 2026 reminds DCMs that they must meet 23 statutory core principles and may self-certify new contracts (CFTC Letter No. 26-08).
• State: the CFTC says prediction markets are federally regulated and can operate in all 50 states under federal law (CFTC). Courts have not uniformly agreed for sports contracts. The Ninth Circuit concluded on August 28, 2026 that the Commodity Exchange Act likely does not preempt Nevada gaming regulation as applied to Kalshi’s sports event contracts (KalshiEX v. Assad).

The Sixth Circuit went further on September 25, 2026. Freshfields reports it held that the contracts are not swaps and that, even if they were, the Act does not preempt state regulation. The same analysis notes the Third Circuit reached the opposite conclusion on preemption and that a Fourth Circuit appeal is pending.

State regulators are acting on this. Ohio’s casino regulator sent cease-and-desist letters dated October 2, 2026 to 10 prediction market operators and brokers, with an October 16 deadline to confirm compliance (Responsible Gambling news report). If you are already licensed in a state, talk to counsel about how a prediction product would sit alongside that license before you open the state.

What are the main routes to market?

Route	How it works	What you take on	Platform layer
Partner exchange through a registered broker	Your app routes customer orders to a CFTC-registered exchange through a futures commission merchant (FCM) or introducing broker. NextPredict lists PrizePicks (Kalshi contracts through its own FCM) and Fanatics (Crypto.com contracts through its own introducing broker) as examples.	Broker registration or a registered broker partner, plus state-by-state review of sports contracts.	Your customer-facing app, accounts, payments and support still need to run. This is the layer we run behind your brand.
Acquire a registered broker	Buy a firm that already holds the registrations. NextPredict reports Betr bought a CFTC-registered broker to support Polymarket-powered markets.	Deal costs, integration and the broker’s ongoing regulatory duties.	Same as above. The product front end sits on top of whichever broker route you pick.
Own exchange	Operate or buy a designated contract market (DCM). NextPredict lists DraftKings (through its Railbird acquisition) and Underdog (own exchange) here.	DCM core principle compliance, surveillance and product certification.	Largest build, with the most regulatory and engineering work.

For most existing operators, the first route is the shortest path to a pilot because it avoids building an exchange. It still needs a broker relationship and a clear plan for each state.

What should you decide before you build?

Question to answer	Why it matters
Which exchange lists the contracts?	Contracts trade on a CFTC-registered exchange, not on your own odds. CFTC proposed rule 2026-05105 says an offering of swaps or futures to the general public must register as a DCM.
Who holds customer funds and routes orders?	TradeInformer explains an FCM can hold segregated customer funds and route retail orders to a DCM.
Which contract categories will you list?	Court rulings and state letters so far focus on sports event contracts, so non-sports categories carry a different risk profile.
Which states will you open?	At launch PrizePicks offered its predictions product in 38 states and Washington, D.C., according to Kalshi’s announcement.

Add three operating decisions to that list. First, decide whether the product runs under your existing brand or a separate one. NextPredict notes sportsbook prediction products usually launch under a separate brand or app from the betting product. Second, define responsible-play tools such as limits, timeouts and self-exclusion, which PrizePicks lists for its product in the Kalshi release. Third, plan identity checks and fraud controls from day one, since the customer funds and account flows are the part of the business you run every day.

If you also run a casino or sportsbook under one brand, our post on running a casino and sportsbook on one back office covers the shared-brand setup. For the sportsbook side of your stack, see our comparison of white-label sportsbook providers.

How fast can you add it?

We will not quote a fixed timeline. Broker registration, an exchange agreement and state review are set by third parties and regulators, and they vary by operator. NextPredict reports that Betr chose to buy a registered broker to support its Polymarket-powered product. The product work on the app, payments and support is the part you can schedule yourself.

How does Maincard help when you add a new product?

Operators adding a prediction product usually have the audience and the brand. What they lack is a full operating stack for a new customer experience. Maincard is a white-label provider: your brand sits on top, and our platform and operations team run the business behind it. For a new product line that includes the white-label platform, design and launch, fiat and crypto payment integrations, player KYC, anti-fraud and anti-bonus-abuse controls, CRM and affiliate platform integration, and 24/7 customer support. Licensing is part of our offer for casino and sportsbook brands, and for the US we provide a sweepstakes-based framework supported by a legal opinion.

Event contract trading sits with a CFTC-registered exchange and registered brokers, so that regulatory layer is separate from the platform layer. On a demo, ask us how we would scope the customer-facing product, which payment and KYC flows you would need, and which parts of your plan should go to your own counsel. You can start at maincard.io.

FAQ

Do I need my own exchange to offer prediction markets?

No. Several operators route orders to a partner exchange through a registered broker. The own-exchange route is reserved for operators ready to meet DCM core principles, surveillance and product certification duties, as the CFTC advisory describes them.

Are sports event contracts legal in every state?

The CFTC says prediction markets can operate in all 50 states under federal law. The Ninth and Sixth Circuits held that federal law likely does not preempt state gaming rules for sports contracts, the Third Circuit reached the opposite conclusion on preemption, and Ohio has sent cease-and-desist letters. Treat each state as its own question and ask counsel.

Can a white-label platform cover this for me?

It depends on the provider and on what the product requires. We run the platform layer behind your brand, including payments, KYC, anti-fraud, CRM and support. Registration with the CFTC for exchange or brokerage activity is a separate regulated step that your counsel should map with you.

What is the difference between a prediction market and a sportsbook?

A sportsbook sets odds and takes the other side of the bet. A prediction market lists contracts on an exchange where customers trade with each other, and the operator provides the app and customer experience, as described by NextPredict and the CFTC explainer.

Where do I start if I already run a casino or sportsbook?

Start with the regulatory route and the list of states you plan to open, then scope the customer experience. Our team can walk through the platform side with you, and your counsel should confirm how the product fits next to your existing licensing.