Fantasy sports company PrizePicks was approved as a futures commission merchant (FCM) on Monday, potentially paving the way for it to offer sports betting via prediction markets.

As an FCM registered with the Commodity Futures Trading Commission, PrizePicks can work with a designated contract market (DCM) such as Kalshi or Crypto.com to offer prediction markets. Robinhood, for instance, is a registered FCM and offers Kalshi’s markets — both sports and otherwise — via that status.

The recent deal by Allwyn to acquire a majority staking PrizePicks highlights the increasing consumer interest in sports predictions, blurring the lines between sportsbooks and financial trading.