Smarkets Seeks CFTC Approval for US Prediction Market Expansion

Smarkets, a UK-based sports betting exchange operator, has taken a significant step towards launching a federally regulated prediction market platform in the United States. The company has applied to become a Designated Contract Market (DCM) with the Commodity Futures Trading Commission (CFTC), which would allow it to operate its own exchange and list markets tied to real-world outcomes.

The CFTC's DCM designation is crucial for companies seeking to offer event-contract trading nationwide under federal commodities law. If approved, Smarkets' platform would join others like Kalshi, Crypto.com, and Polymarket US in offering prediction markets tied to various events, including sports and politics. In its application, Smarkets outlined the structure and operating rules for its proposed exchange, including how contracts would trade, clear, and settle.

The company's CEO, Jason Trost, has signaled plans to bring Smarkets' exchange model to the US through a CFTC-regulated platform. Trost emphasized the importance of offering markets for sports and politics in an interview last year, stating that these areas are '100% interesting' for prediction markets. The long-term vision for Smarkets is to become a multi-asset trading platform, allowing users to trade stocks, bonds, options, and prediction markets.