Fliff and Onyx Odds File to End Sweepstakes Sportsbook Classification

Editor at sweeptastic

Published on 19 Aug 2026

3 min read

Fliff and Onyx Capital are pursuing status as Futures Commission Merchants (FCMs), which would allow the two online sweepstakes betting sites to become prediction markets. Both registered with the National Futures Association (NFA) on August 12, 2026.

The National Futures Association (NFA) is an independent, self-regulatory organization involving the U.S. derivatives industry. The nonprofit organization protects derivatives investors by ensuring market integrity and maintaining ethical standards.

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Fliff and Onyx Capital are becoming prediction markets

The move allowed Fliff and Onyx to adapt to ongoing pressure in the online sweepstakes casino and sportsbook market. The sweepstakes industry has faced legislative setbacks and increased legal scrutiny in the past two years.

Throughout the first half of 2026, states such as New York, Indiana, Louisiana, and Oklahoma have implemented new laws that would ban sweepstakes casinos.

Government agencies in Indiana and Minnesota have sent cease-and-desist orders to operators, while dozens of class-action lawsuits remain active in US federal courts.

Why switch from dual-currency sweepstakes sportsbook operations?

To adapt to the evolving legal environment, operators such as Betr, MyPrize, ProphetX, and Novig previously moved from sweepstakes sportsbooks to the prediction market niche.

Because such sites do not use dual-currency systems, the raft of new laws does not target their operations. New York state is debating laws that would ban prediction markets, though.

The National Futures Association (NFA)

The U.S. Commodity Futures Trading Commission (CFTC) designated the National Futures Association as a watchdog for derivatives like futures, swaps, and retail foreign exchange (forex).

The CFTC, a U.S. federal agency formed in 1974, oversees markets, protects against fraud, enforces rules, and reduces industry risk. It oversees market participants such as large trading firms, commodity trading advisors, and brokers.

Thus, NFA approval would clear the way for Fliff and Onyx to transition to a newer, less vulnerable business model.

Fliff dual-currency sweepstakes site

Fliff launched in September 2020 as a mobile app for a sports pick operator with a bettor-versus-book model. Users would choose 2 or more picks against the house, effectively creating a parlay bet.

In January 2021, Fliff switched to a dual-currency sweepstakes sportsbook system. Since then, it has operated as a sweepstakes sportsbook.

A 2023 lawsuit filed in California (Bishoy Nessim v. Fliff, Inc.) alleged that the site was operating an illegal sports betting operation in disguise. In late 2023, a federal judge agreed to Fliff’s motion to have the case sent to binding arbitration.

When that happened in early 2024, the case left the public eye. As of August 2026, major class-action lawsuit firms like Berger Montague continue to pursue class-action lawsuits against Fliff.

Onyx Odds sweepstakes betting site

Onyx Games LLC launched the Onyx Odds sweepstakes sports betting app in October 2024. Because it launched later than Fliff, its terms of use made it less likely to face lawsuits.

Similarly, Onyx Odds has not received any cease-and-desist orders from state attorneys general or other regulatory agencies. But the current regulatory environment has convinced Onyx Odds it should transition to another set of game rules.

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When could Onyx Odds and Fliff receive an answer?

The certification process for Fliff and Onyx Odds is expected to take 6 to 12 months. For instance, ProphetX took 7 months between filing for the new status and receiving final approval from the CFTC.

Rebet filed in June 2026, so it presumably is the next in line to receive approval. Barring major bureaucratic roadblocks, one might expect an answer on Fliff’s and Onyx Odds’ status in early to mid-2027.