ProphetX review: the sports prediction market with its own clearinghouse
ProphetX dropped its sweepstakes model in June 2026 and relaunched as a CFTC-regulated sports exchange in 49 states. How it works, what it charges, the Connecticut order, and how it compares with Kalshi and Novig.
In this article
ProphetX is a peer-to-peer sports prediction market regulated by the CFTC. In June 2026 it became one of the few prediction markets to hold both federal licences an exchange can have: it registered as a derivatives clearing organization on 10 June and as a designated contract market on 11 June, then launched nationwide on 18 June 2026.
Holding both means ProphetX lists, matches, clears and settles its contracts itself, without renting another company's exchange or clearinghouse.
As of 21 October 2026.
ProphetX at a glance
| ProphetX | |
|---|---|
| What it is | A peer-to-peer sports exchange |
| Regulator | CFTC (exchange and clearinghouse, June 2026) |
| Markets | Sports only, including parlays |
| Minimum age | 18 |
| Availability | 49 states, not Nevada; Connecticut ordered it to stop in September 2026 |
| Money | Real dollars; the old sweepstakes currencies are retired |
| Funding | A $35 million round in summer 2026 |
How ProphetX works
You buy contracts on sports outcomes from other users. A contract pays out if the outcome happens; its price is the market's estimated chance (how prediction market odds work). Because every trade is matched between users, ProphetX's income comes from fees rather than from customers losing.
ProphetX has said it will not run an affiliated trading arm that takes positions against the public, a point of difference in an industry where some exchanges work with in-house or affiliated market makers.
What ProphetX charges
Published reviews in 2026 describe a fee of 2% on net winnings per market for straight trades and no fee on parlays. ProphetX's rulebook and fee schedule are the authoritative source, and fees on exchanges change; check the order screen before you trade. Compare with Kalshi's price-based fee, which charges on every trade whether you win or lose (Kalshi and Polymarket fees).
Worked example. You buy 100 contracts at 40¢ ($40) and the team wins, paying $100. Your net winnings are $60; a 2% fee on that is $1.20, leaving $58.80. If the team loses, there are no net winnings, so no fee under that structure.
From Prophet Exchange to ProphetX
ProphetX grew out of Prophet Exchange, a sports betting exchange, and for a period ran a sweepstakes model with "Prophet Points" and "Prophet Cash". After its CFTC approvals it retired the sweepstakes currencies and moved to real-money event contracts, the same path Novig took (Novig review).
Is ProphetX legal?
ProphetX operates under federal derivatives law in 49 states. Nevada is excluded, and on 10 September 2026 Connecticut ordered ProphetX to stop offering sports contracts to residents, part of a wider Connecticut crackdown that also targeted Underdog (Underdog Predictions). Missouri sent letters to other operators in the same month. Expect the list to change as courts rule (is Kalshi legal?).
ProphetX vs Kalshi vs Novig
| ProphetX | Kalshi | Novig | |
|---|---|---|---|
| Markets | Sports | Everything from sports to weather | Sports |
| Licences | Exchange and clearinghouse | Exchange and clearinghouse | Exchange |
| Fee model (reported) | 2% of net winnings; parlays free | Price-based fee on every trade | Marketed as commission-free |
| Minimum age | 18 | 18 | 21 |
| States | 49 | Most | 47 + DC |
Parlays are where sports-only exchanges try hardest to compete with sportsbooks; how they work on Kalshi and Polymarket: parlays on Kalshi and Polymarket.
ProphetX: frequently asked questions
Is ProphetX legit?
Yes. It is registered with the CFTC as both a designated contract market and a derivatives clearing organization (June 2026).
Is ProphetX legal in my state?
In 49 states, not Nevada. Connecticut ordered it to stop in September 2026, and other states are challenging prediction markets in court.
Does ProphetX still use Prophet Cash?
No. The sweepstakes currencies were retired when ProphetX became a regulated exchange; it trades in real dollars.
What are ProphetX fees?
Reviews report 2% of net winnings per market on straight trades and 0% on parlays. Check the current fee schedule.
What is the minimum age on ProphetX?
18.
