Sporttrade, a Philadelphia-based company specializing in financial technology for sports betting, has taken a significant step towards its goal of becoming a nationwide prediction market platform. The company recently submitted applications to the Commodity Futures Trading Commission (CFTC) to gain Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) status. This move would allow Sporttrade to expand its sports event contracts and prediction markets to a broader U.S. audience, pending approval.

Founded in 2022, Sporttrade is currently regulated as a state-licensed sports betting operator in five states: New Jersey, Colorado, Iowa, Arizona, and Virginia. However, with federal registration, Sporttrade plans to extend its reach across the nation, providing an efficient and transparent platform for trading sports-related event contracts. CEO Alex Kane expressed excitement about the company’s new chapter, noting that the CFTC’s regulatory framework would enable them to offer higher levels of consumer protection and market efficiency.

The Push for Federal Registration

Sporttrade’s decision to seek CFTC registration comes after the company previously requested approval in April 2025 to operate its technology in all 50 states. The company’s prediction market technology is designed specifically for sports, making it a unique player in a rapidly growing space. This move follows in the footsteps of platforms like Kalshi and Crypto.com, which launched similar sports prediction contracts in 2025.

“We had originally constructed our venue under the assumption that the sports trading vertical would follow the trajectory of most other electronic markets,” said Kane, as Sporttrade reports. “Federal registration will unlock the full potential of our natively-built exchange, clearing, and broker technology in our pursuit to always put the customer first.” The registration process, however, may take months or even years, as the CFTC evaluates the application and conducts necessary background checks.

Since 2025, the sports prediction market has witnessed significant expansion. Kalshi, the first to secure approval for sports event contracts, is now offering markets on major sporting events, including the Super Bowl. Additionally, FanDuel and DraftKings, the two largest state-regulated sportsbooks in the U.S., have launched their own prediction products. Other players, including Fanatics, Underdog, and PrizePicks, have also entered the market, further intensifying competition.

Despite the growing competition, Kane maintains that these platforms are essentially forms of sports betting. “You’re not going to hear me say this isn’t sports betting,” he asserted in 2025. This stance sets Sporttrade apart from its competitors, as the company clearly defines its products as sports wagering, whereas others may frame them as financial instruments or markets for speculative trading.

Challenges in the Prediction Market Space

Sporttrade’s push to gain federal approval comes amid ongoing legal debates about whether platforms offering event contracts are considered sports betting under state laws. Currently, the CFTC regulates many of these prediction market platforms, but several states, including Nevada and Massachusetts, have issued cease-and-desist letters to companies like Kalshi and Polymarket, claiming their offerings constitute illegal gambling.

Kane’s company is looking to avoid such issues by seeking clarity from federal regulators, arguing that event contracts fall squarely within the realm of sports betting. He also stresses that federal registration will provide a clearer and more standardized framework for participants, protecting both market participants and operators.

As Sporttrade waits for the CFTC’s decision, the company is positioning itself as a major contender in the evolving sports prediction market. Federal registration would allow the platform to offer its services nationwide, leveling the playing field with competitors that are already operating in multiple states. If approved, Sporttrade could set a new standard for regulated sports prediction markets, offering customers a transparent and secure platform for betting on sports events.