Boom Sports adds ProphetX markets to its app

ProphetX and Boom Sports said they have struck a strategic partnership that will bring federally regulated sports prediction markets directly to Boom’s users. Under the agreement, Boom will integrate ProphetX’s exchange into its app, giving users an in-app way to trade event contracts tied to real-world sports outcomes.

The contracts available through the integration will cover game results, individual performance markets and season-long futures. The markets will be powered entirely by ProphetX’s CFTC-regulated infrastructure.

As covered in July, ProphetX raised $35 million after CFTC approval for its nationwide launch.

Jake Benzaquen, ProphetX’s co-founder and chief commercial officer, said Boom’s community is already built around fast, interactive formats, and that this makes prediction markets a natural fit. He said the partnership gives Boom users direct access to a federal exchange where, as he put it, the crowd sets the price and participants compete against one another rather than against the house.

The companies described ProphetX’s model as a true exchange, meaning a two-sided marketplace in which buyers and sellers set prices and trade CFTC-regulated derivatives contracts with one another. They contrasted that with traditional sportsbook models, where the operator sets the terms.

Boom Sports is a daily fantasy sports operator founded in 2015 and based in New York. The company said its DFS app is live for real money in 27 states and that it has built sports experiences for NBC Sports, Caesars Entertainment and Tim Hortons.

Boom’s chief executive, Stephen A. Murphy, said the company is building a destination where fans can engage with their favourite players and teams in different ways, and said he was excited to add prediction markets to the Boom community. The company also said it was coming off a record-setting quarter, with new customers up more than 50% from a year earlier and its best revenue month in company history.