Sleeper Markets: Sleeper’s Prediction Market Faces Legal Challenges

Known for its pick’em and season-long fantasy games, Sleeper is seeking to offer prediction markets via Sleeper Markets LLC. This venture represents a broader trend of DFS apps, sportsbooks, and other iGaming operators breaking into the prediction market industry.

Sleeper Markets is currently in a legal battle with the CFTC to earn the right to offer event contracts on sports and other markets, so no trading is available at Sleeper just yet. FantasyLabs is following this developing story—stay tuned for updates.

Sleeper Markets Promo Code Details

Sleeper Markets is not live yet, so there’s no promo code or even signup details available yet.

If Sleeper Markets gets the go-ahead, FantasyLabs will keep you updated on the launch date and any Sleeper Markets promo code info.

New-user trading bonuses similar to the Kalshi referral code might become available for Sleeper Markets, so be sure to check back for updates!

⭐ Sleeper Markets Promo Code	Stay tuned!
💰 Sleeper Markets Signup Offer	Stay tuned!
📍 Sleeper Markets States	TBD
📝 Sleeper Markets Terms	Likely 18+, or 19/21+ in some states. Full terms will apply.
🎯 Last Verified by FantasyLabs On	December 2025

While you wait for the launch of Sleeper Markets, see if the Sleeper Fantasy promo code is live in your state.

Sleeper Markets News Updates & Timeline

Here’s a timeline following the latest Sleeper Markets developments:

• Late May 2025: Sleeper Markets submitted its application to the NFA (National Futures Association) for registration as an FCM, which would allow the operator to legally offer prediction market event trading via a partnership with a DCM.
• Late August 2025: The NFA officially completed its review of Sleeper Markets’ FCM application and indicated that final approval would be delivered no later than Sept. 4.
• Mid-September 2025: On behalf of Sleeper Markets, Joshua Sterling sent a letter to the Office of the Inspector General, reporting that the CFTC interfered with the final approval of Sleeper’s prediction markets product.
• Late September 2025: Sleeper Markets formally sues the CFTC for illegally blocking its FCM application.

FantasyLabs will cover the results of the lawsuit and inform our readers if Sleeper Markets becomes a legal prediction market app.

Sleeper Markets Legal Status

Sleeper Markets is not yet legal or live.

The entity submitted an application to the NFA to become an FCM (Futures Commission Merchant). As an FCM, Sleeper Markets would be able to serve as an intermediary by accepting orders to buy/sell futures and facilitating event contract transactions.

Sleeper Markets would have to partner with a DCM (Designated Contract Market), which is a CFTC-registered exchange that enforces trading rules to prevent market manipulation. For instance, Robinhood is an FCM that is partnered with the DCM Kalshi.

Think of Sleeper Markets like the middleman, and its partnering DCM as the host of event contracts. Potential DCM partners for Sleeper Markets include Kalshi, Polymarket, and Crypto.com, but no partnership is in place right now.

How Sleeper Markets Will Work

Sleeper Markets is not a sportsbook—it will operate similarly to other prediction market apps.

As a trading exchange, Sleeper Markets will let users buy/sell event contracts on events potentially ranging from sports outcomes to pop culture and politics.

Users can buy Yes or No contracts ($0.01 to $0.99) to indicate whether they think an event will happen or not. Correct contracts pay out $1, and incorrect contracts go to nil.

For instance, Sleeper Markets might list Yes at $0.52 for the Chargers to win in the Chargers vs. Eagles game. If you buy one contract at $0.52 and hold on to it until it settles, you’d get a profit of $0.48 (not including fees).

Users may sell contracts before an event settles to lock in profit or mitigate losses. For instance, if the Chargers are up by two touchdowns at half, the value of your Yes contract may increase from $0.52 to $0.65. If you don’t want to risk a comeback by the Eagles, you could sell early to guarantee the $0.13 profit (again, that’s before fees).

Alternatively, if the Chargers were down by two touchdowns at halftime, your Yes contract might now be worth only $0.40. You can sell early and only lose $0.12 instead of the full $0.52.

At Sleeper Markets, event contract prices are influenced by market demand and are constantly changing. The peer-to-peer exchange facilitates transactions between users (usually for a fee), so you’re trading on market price rather than house odds.

Potential Event Contracts Available at Sleeper Markets

When you consider the operator’s focus on fantasy sports, there’s a good chance that Sleeper Markets will focus on sports event contracts. It may mimic a sportsbook by offering trading on moneylines, spreads, totals, futures, and even player props.

Like other sports platforms that have rolled out exchanges (think Fanatics Markets and FanDuel Predicts), Sleeper Markets may also offer markets related to:

• Pop culture
• Politics
• Weather
• Economics
• Finance
• Entertainment
• Current events
• World affairs

Sleeper Markets Legal States

Sleeper Markets hasn’t indicated where it plans to go live yet.

With some sportsbooks that have launched exchanges, we’ve seen them target states without legal sports betting to avoid endangering the legal status of their sportsbooks. 

Sleeper doesn’t have this issue as it’s a fantasy product, so it could follow in the footsteps of other DFS operators that entered the prediction markets space. For instance, PrizePicks has Team event contracts (moneylines, spreads, & totals) in both legal and non-legal sports betting states.

If Sleeper Markets offers picks on pop culture and politics, these markets could be available in more states.

Sleeper Markets App Review

It’s unclear whether Sleeper Markets will have its own dedicated app or live in the existing Sleeper Fantasy app.

Regardless, users should be able to trade event contracts on iOS or Android devices. A desktop platform would be nice as well.

Additionally, the FantasyLabs team expects a similar smooth experience for banking, customer service, and navigation that the Sleeper Fantasy app currently offers. The Picks feature is already as user-friendly as it gets, as users just have to pick More or Less, so the Yes or No setup should feel natural.

Fees & Taxes for Sleeper Markets

Sleeper Markets will likely have taker fees built into transactions, as do other prediction market apps in the U.S. We don’t expect any deposit/withdrawal fees.

Additionally, your profits on Sleeper Markets will be subject to income tax, just like profits from any other exchange. At the same time, you can benefit from tax advantages for losses.

Responsible Trading at Sleeper Markets

While it’s not a sportsbook or DFS platform, Sleeper Markets comes with risk.

This prediction market exchange will likely prioritize responsible trading to not only retain its FCM status but also protect users.

Responsible trading resources at Sleeper Markets may include:

• Educational materials on trading practices
• Deposit and trade limits
• Responsible trading helplines

If you need further responsible gambling support, call 1-800-GAMBLER.

FAQs

What is Sleeper Markets?

Sleeper Markets is a pending prediction market platform from Sleeper. It submitted an NFA application, but its legal status is in limbo as it’s currently suing the CFTC. If it eventually goes live, Sleeper Markets will list event contracts that let users buy/sell on outcomes related to sports, pop culture, politics, etc.

What is the Sleeper Markets promo code?

No Sleeper Markets promo code is available right now, as the app isn’t live yet. FantasyLabs will post the promo code as soon as one is available.

Is Sleeper Markets legal?

No, Sleeper Markets is not legal or live yet. We’re still waiting for the results of the operator’s lawsuit against the CFTC, which intervened in the NFA’s approval of Sleeper Markets’ FCM application.

What can you trade at Sleeper Markets?

Sleeper Markets will likely list event contracts for sport outcomes (moneylines, spreads, totals, futures, player props, etc.). Trading might also be available on pop culture, politics, weather, finance, etc.