Smarkets Filed For CFTC Exchange License In March
The betting operator seeks federal approval for prediction markets while expanding its state-level sportsbook presence.
Updated on Sept. 28, 2026 in Gambling
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In March 2026, Smarkets filed a license application with the Commodity Futures Trading Commission to operate as a designated contract market in the United States. The company aims to facilitate prediction markets for topics including economics and elections.
Why it matters
The company is simultaneously pursuing state-level sports betting licenses as a strategic hedge against potential legal challenges to existing event contracts. This dual approach aims to secure Smarkets' market position amidst evolving U.S. regulatory scrutiny.
Smarkets has recorded over $50 billion in lifetime trading volume since its 2009 launch in the United Kingdom. The company currently maintains its SBK sportsbook product in Indiana and previously operated in Colorado.
The players
Smarkets
This is a betting exchange and sportsbook operator that has functioned as an international gambling entity for over 15 years.
Commodity Futures Trading Commission
This is the federal agency responsible for regulating commodity futures and options markets in the United States.
The details
The firm is preparing to launch a refreshed interface for its U.S. market debut while exploring potential licensure in Illinois, Iowa, and Michigan. Its SBK product operates as a traditional house-counterparty model in the U.S., distinct from its peer-to-peer exchange model used elsewhere.
Timeline
Smarkets began offering a betting exchange in the UK in 2009.
Mainstream prediction markets offering sports contracts entered the space in late 2024.
Smarkets filed its official application for a CFTC license in March 2026.
Culture Shift
The firm is navigating the complex regulatory environment established by the Commodity Exchange Act to gain legal status as an exchange operator. This shift reflects a broader trend of gambling firms seeking federal recognition to compete in the growing prediction market space.
Customers in Indiana may see changes to their betting experience as the company transitions its product interfaces. Those in states like Illinois or Michigan should monitor future announcements regarding potential service expansion or new product rollouts.
The takeaway
Smarkets is balancing legacy exchange expertise with the traditional house-counterparty sports betting model to maintain resilience. Users should expect continued volatility in available betting platforms as operators seek regulatory certainty through both state and federal avenues.
Further reading
Learn more about current regulations in the Gambling section.
Source note: This article includes information reported by Covers.
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