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ProphetX has raised $35 million to expand its federally regulated sports prediction market and B2B platform, marking one of the bigger recent funding rounds tied to the fast-developing U.S. prediction markets space.
According to the company, the round was led by Parlay Capital and Data Point Capital. Other participants included FDJ Ventures, Sharp Alpha Advisors, Connexa Capital, Greenwave Ventures, Impellent Ventures, and the Operating Group, along with direct investment from Chicago Trading Company Ventures, Belvedere Trading, Ematiq, and principals at White Swan Data and Consolidated Trading.
The raise comes shortly after ProphetX received CFTC approval in June as both a designated contract market and a derivatives clearing organization. That regulatory status is central to the company’s pitch as it looks to scale a sports-native prediction market in the U.S. and offer infrastructure to partners through a B2B model.
ProphetX said the new capital will go toward product development, deepening liquidity, and expanding distribution. The company also recently struck a distribution deal with Players’ Lounge, putting NFL, NBA, and international soccer contracts in front of that cash-prize gaming community. The source report says Players’ Lounge users have handled more than $250 million in skill-based wagers since 2016.
CEO and co-founder Dean Sisun said in a press statement: “Prediction markets are now a permanent fixture of the American financial landscape, and ProphetX intends to lead them.”
ProphetX also reported early growth metrics following its move into the regulated exchange structure. The company said active users and assets on the platform rose 50% in its first 30 days as a regulated exchange, and that it is targeting triple the trading volume in 2026.
For players and market watchers, the immediate takeaway is less about a consumer launch event and more about market structure. The funding, recent CFTC approvals, and B2B distribution push suggest ProphetX is focused on building out liquidity and partner access rather than announcing a broad new retail rollout.
What comes next will be whether ProphetX adds more distribution partners and how its regulated model develops as prediction markets continue drawing attention from gambling operators, fintech firms, and regulators across the U.S.
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Source: As reported by news.bettingstartups.com.
