Fliff is preparing to launch into prediction markets. The company’s move into the emerging industry is one of several pivots from a sweepstakes model to event contracts.
Fliff submitted an application to become a Futures Commission Merchant (FCM) on Wednesday. If approved, this would allow the company to partner with a Designated Contract Market (DCM), such as Kalshi or Polymarket, to offer event contracts on its platform.
Capitalizing on Engagement of Mass Market
Fliff markets itself as a social sportsbook. Its website states, “Fliff turns sports predictions into a play-for-fun social game with daily credits to play for free!”
Given its focus on sports, its new venture into prediction markets will likely focus on sports markets, although the company has not released any official details. Fliff did not respond when contacted for comment.
When launching its social sportsbook, CEO Matt Ricci said, it was designed to “capitalize on the engagement of and excitement around sports betting but by building a product we thought would be better suited for the mass market.”
The mass market is now firmly focused on prediction markets. Volume at Kalshi exploded during the World Cup and is expected to grow further as the NFL season kicks off.
Sweepstakes Model Struggles for Survival
Fliff also runs a sweepstakes casino under the brand name Sidepot Casino. The sweepstakes model, used to bypass state gambling laws by allowing players to use virtual currencies to play casino games or wager on sports, has faced intense legal scrutiny of late.
As of the end of July, Fliff excludes 20 states from its sweepstakes products. It added Iowa, Indiana, and Maine to the restricted list after the states passed bills targeting dual-currency gambling.
Several other operators also exited the states as the bans came into effect on July 1. This included major operators such as VGW, Modo, Stake, and Pulsz.
Other operators are shutting up shop altogether. The Money Factory and CoinFrenzy were the latest operators to announce their closure.
Other Companies Launching Prediction Markets
Others, like Fliff, are pivoting to prediction markets. Novig has transitioned from the sweepstakes model to event contracts. The company launched its platform last week and promptly sued four states to protect its legal status.
Fliff has also faced lawsuits in the past alleging that the company operates an illegal gambling platform through its sweepstakes platform. California resident Bishoy Nissim eventually dropped a complaint seeking $7 million in damages from the company.
It can expect further legal scrutiny upon entering prediction markets, but the threat of legal action is not dissuading many companies from entering the industry.
The appeal of offering “legal” sports betting nationwide has drawn in operators from the DFS, sweepstakes, and betting industries. DraftKings and FanDuel are confident their existing user base puts them in a prime position to take a large market share.
Dr. Laila Mintas, previously CEO of PlayUp in the US, which also operated DFS and social betting, says the market is large enough for everyone.
Mintas is CEO of 365predictions, which aims to launch its own prediction market platform early next year. In an interview with CasinoBeats last month, she stated, “In sports betting, nobody ever quoted numbers as we see in the prediction market space. I think the last numbers I have seen quoted as a market size are $1 trillion, which is big enough for everybody.”
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