Betr Buys NFA Broker to Facilitate Entry into Prediction Markets

To accelerate its planned entry into the prediction market field, Betr, the daily fantasy site co-owned by influencer Jake Paul, has acquired Ascent Capital Management Inc. With this move, the company secures registration with the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC).

Betr Can Now Offer Prediction Markets Platforms

As a result of the acquisition, Betr will become a CFTC-registered introducing broker, which enables it to offer federally regulated event contracts through designated contract markets (DCMs). Betr said the deal will fast-track its expansion plans, with prediction markets expected to launch within the Betr super app later this year.

Introducing brokers can work with federally regulated exchanges like Kalshi and Crypto.com’s derivatives platform to provide users access to event contracts. Unlike futures commission merchants (FCMs), however, introducing brokers are not allowed to directly custody customer funds.

Despite that, the deal with Ascent Capital Management is still a step in Betr’s goals, which its officials outlined a few months ago during a shareholder address. Joey Levy, founder and CEO of Betr, explained that prediction markets represent a major evolution in both interactive entertainment and financial technology. He added that acquiring an established broker and securing IB registration enables Betr to focus fully on launching a seamless and compliant prediction markets experience powered by Polymarket.

Betr Follows In the Footsteps of Others

The acquisition of Ascent Capital Management Inc. also enables Betr to avoid the typically lengthy NFA application approval process. Fanatics employed a similar approach when it acquired Paragon Global Markets last year, becoming the first sports betting operator to roll out prediction markets ahead of DraftKings Predictions and FanDuel Predicts.

Betr originally applied for NFA membership in early October, but the application showed no movement for the following seven months. Approval timelines for NFA registration have varied across companies, though Betr’s delay has been notably lengthy. DraftKings received approval in nearly six months, while PrizePicks completed the process in about four months.

According to the NFA website, applications can take “six weeks or longer” to receive approval. With the acquisition of ACM, however, Betr is no longer required to wait for the approval process and is now operating as an active introducing broker.

The newest development with Ascent Capital Management marks yet another big step in the growth of Betr, but that’s not the only major achievement that the company has recently recorded. Back in March, Betr’s online casino went live in 30 states, which is seen as a bold move at a time when scrutiny of the sector is growing.