ProphetX and Players' Lounge Partner to Launch CFTC-Regulated Sports Prediction Markets to the Next Generation of Competitive Gamers

Players' Lounge is live with ProphetX's federally regulated prediction market exchange, giving millions of skill-based gaming fans a new way to trade on the sports they know best

NEW YORK, July 23, 2026 /PRNewswire/ -- ProphetX, a CFTC-designated contract market (DCM) and derivatives clearing organization (DCO) built for sports prediction markets, and Players' Lounge, the leading skill-based gaming platform where millions of gamers compete for real money on Madden NFL, NBA 2K, Call of Duty, Fortnite, and more, today announced a strategic partnership launching federally regulated sports prediction markets within the Players' Lounge ecosystem.

Under the agreement, Players' Lounge has integrated ProphetX's prediction market exchange, enabling its community of competitive gamers and sports fans to trade event contracts on real-world sports outcomes — from NFL game results and NBA player props to tournament brackets and championship futures. The markets are currently available through the Players' Lounge platform and powered entirely by ProphetX's CFTC-regulated infrastructure.

Unlike traditional sportsbooks, where the house sets the odds and stands on the other side of every customer position, ProphetX operates as a true exchange—a two-sided marketplace where buyers and sellers determine prices, trades are executed as CFTC-regulated options, and the market—not the house—sets the price.

"Players' Lounge has built something genuinely rare: a platform where a new generation of sports fans already shows up, competes, and has real money on the line. That community deserves access to the most competitive, transparent markets on the planet — and that's exactly what ProphetX provides. This isn't sports betting dressed up in new clothes. It's a federal exchange where the crowd sets the price and every participant is on a level playing field."

— Jake Benzaquen, Co-Founder and Chief Commercial Officer, ProphetX

"Prediction markets on ProphetX are a perfect fit for what Players' Lounge is all about: putting your knowledge to work in a fair, skill-driven environment. We're excited to give our community a regulated, exchange-based way to trade on the games they care about most."

— Austin Woolridge, Chief Executive Officer, Players' Lounge

A New Category for the Gaming-Native Sports Fan

The partnership arrives at a pivotal moment for prediction markets in the United States. Following Kalshi's landmark court victory establishing federal CFTC oversight, and with Robinhood, Coinbase, PrizePicks, and Webull all launching prediction market integrations in rapid succession, the category has established itself as a mainstream financial product distinct from traditional gambling. 

ProphetX is purpose-built to serve the next wave of distribution partners — platforms with engaged audiences who want to do more with their sports knowledge than simply watch. This will be the first of many B2B partnerships ProphetX launches this summer and later this year.

Players' Lounge, backed by investors including Drake, Take-Two Interactive CEO Strauss Zelnick, Comcast Ventures, and Samsung Next, has processed over $250 million in skill-based gaming wagers since launching in 2016. The platform's community skews more digitally native than legacy sportsbooks, with deep roots in competitive titles spanning the NFL, NBA, and major esports franchises — an audience that aligns directly with ProphetX's sports first platform. 

Partnership Details

Prediction market trading through the Players' Lounge integration is currently available to eligible users in applicable U.S. jurisdictions. Markets will initially cover major professional sports including the NFL, NBA, and international soccer, with additional contracts added on a rolling basis. All trades are executed on ProphetX's CFTC-regulated exchange and cleared through ProphetX's registered DCO. Users must complete a standard Know Your Customer (KYC) process to participate.

The partnership recently launched, with further product and market expansions to come prior to NFL season.

About ProphetX

ProphetX is a CFTC-designated contract market (DCM) and derivatives clearing organization (DCO) built for sports prediction markets. ProphetX operates a two-sided exchange where participants trade event contracts on real-world sports outcomes under full federal regulatory oversight. For more information, visit prophetx.com.

About Players' Lounge

Players' Lounge is a real-money skill-based gaming platform where competitors wager on their own performance across titles including Madden NFL, NBA 2K, Call of Duty, Fortnite, and Apex Legends. Founded in 2016 and backed by Drake, Griffin Gaming Partners, Comcast Ventures, Y Combinator, and others, Players' Lounge has facilitated over $250 million in skill-based wagers. For more information, visit playerslounge.com.

Media Contacts

ProphetX: ProphetX Newsroom  | [email protected]

Players' Lounge: Austin Woolridge  | [email protected]

Prediction market trading involves risk. Event contracts are regulated derivatives products offered on a CFTC-designated exchange. Eligibility is subject to applicable federal and state regulations and requires completion of a Know Your Customer (KYC) process. Not available in all U.S. states.

SOURCE ProphetX