Fanatics is poised to expand its business into the burgeoning prediction markets sector, marking a significant development in the world of sports betting. The initiative, confirmed on Thursday, involves a collaboration with Crypto.com to launch an event-contract product. This announcement came during an interview with CNBC’s Sara Eisen, where CEO Michael Rubin emphasized the company’s intentions. Following the interview, a spokesperson further clarified the plans to SBC Americas, stating, “Today on CNBC, Fanatics CEO Michael Rubin announced our plans to enter the predictions market in partnership with Crypto.com. We will have more specific details to share on timing in the coming weeks.”
Details surrounding the structure of the new product remain sparse. The company has not disclosed whether customers will access it via a dedicated platform or if the primary focus will be on sports events. Additionally, the availability of the product across different states has yet to be outlined. Rubin noted that Fanatics currently operates in only 23 states, indicating that the remaining 27 states also harbor potential audiences for this product. During the interview, he expressed his belief that established sportsbooks hold a significant strategic advantage over platforms such as PredictIt and Kalshi in this emerging space.
Fanatics joins a growing roster of operators entering the prediction market arena, becoming the fifth such company to signal its intentions. Other players include FanDuel, Underdog, DraftKings, and PrizePicks. Notably, Underdog has already rolled out sports event contracts in various states, collaborating with Crypto.com as its technology service provider. This uptick in activity in the prediction markets space began in earnest when Flutter announced a partnership between FanDuel and the CME Group to introduce sports event contracts.
While Fanatics is moving forward aggressively, other operators, like BetMGM and Caesars, have approached the prediction market cautiously, citing concerns over state-level regulatory objections. Unlike some competitors, Fanatics is actively aligning itself with operators that are undeterred by regulatory hurdles, such as DraftKings and FanDuel, which recently left the American Gaming Association (AGA) over differences in strategic objectives regarding prediction markets. In contrast, Fanatics remains an AGA member, a fact confirmed by both the association and the company itself.
The decision to enter the prediction markets coincides with Fanatics’ objective to strengthen its position among the top three online sports betting brands in the U.S. As Rubin articulated, “If there is a business that is important to our customers, we want to be in there and do it better.”
The partnership with Crypto.com enhances the latter’s already expanding footprint in the prediction markets. The platform made headlines last year by becoming the first financial derivatives marketplace to offer sports contracts. Since then, it has broadened its collaboration with various entities, including deals with Underdog, Trump Media and Technology Group’s Truth Social, and the U.S. social gaming platform MyPrize.
However, the landscape for such innovations is fraught with regulatory challenges. For example, a recent judicial decision in Nevada prevented Crypto.com from moving forward with aspects of its sports event-contract offerings. This ruling came as regulators warned that participation in sports event contracts, even in markets beyond state borders, could jeopardize an operator’s licensing status. Maryland is among the latest jurisdictions to issue such warnings, echoing concerns that have been raised in other states where Fanatics operates.
As these developments unfold, the future of prediction markets remains uncertain, influenced by both regulatory environments and competitive dynamics among operators.
