Fanatics is making significant strides into the prediction markets arena, underscoring its dedication to this evolving sector. CEO Michael Rubin announced in a recent appearance on CNBC that the company plans to launch event contracts in the coming weeks. This development comes on the heels of discussions between Fanatics and Crypto.com, a platform that is regulated by the Commodity Futures Trading Commission (CFTC).
Rubin is optimistic that traditional sportsbooks like Fanatics will maintain a competitive advantage over upstarts such as Kalshi and PredictIt, citing the company’s established reputation and extensive customer base.
With its upcoming entry, Fanatics will become the fifth online gaming operator to explore prediction markets, joining the ranks of FanDuel, Underdog, DraftKings, and PrizePicks. Although specific details about the nature of these event contracts are sparse, Rubin hinted that Fanatics currently operates in 23 states and anticipates demand for its services in the remaining 27 states.
The industry is experiencing rapid growth, particularly following Flutter’s announcement regarding FanDuel’s partnership with CME Group in August. For Fanatics, which is striving to secure the third position in the U.S. online sports betting market, expanding its offerings is a strategic move to attract a wider customer base.
Underdog has already made headway in this domain, providing sports prediction markets in several states since September with the help of its partnership with Crypto.com for technical infrastructure.
Despite some hesitation from other industry giants like BetMGM and Caesars regarding event contracts—amid concerns voiced by state gaming regulators—Fanatics appears to align itself with the strategies of leading sportsbooks and daily fantasy sports operators. Recent developments show that while FanDuel and DraftKings have opted to withdraw from the American Gaming Association (AGA) due to conflicts with its stance on prediction markets, Fanatics has maintained its membership. Reports confirm that Fanatics is still listed as an active member on the AGA website, while its competitors have been removed.
In an exciting year for Crypto.com, which claims the distinction of being the first financial derivatives marketplace to offer sports contracts, the company has expanded its partnership network considerably, adding Fanatics to its portfolio. Along with collaborating with Underdog, Crypto.com has made its contracts available on new platforms such as Truth Social, owned by Trump Media and Technology Group, and has also forged a partnership with U.S. social gaming company MyPrize. Furthermore, it recently secured a deal to host a prediction market offering on Hollywood.com.
However, the venture may encounter obstacles in Nevada. A judge recently denied Crypto.com’s request for a preliminary injunction against the Nevada Gaming Control Board (NGCB), leading state regulators to order the cessation of sports event contracts pending the outcome of an appeal. Rubin’s announcement aligns with growing scrutiny from gaming regulators across various states. Notably, just a day before his remarks, Maryland became the latest state to issue a warning to licensees regarding the potential impact of engaging with sports contracts on their gaming licenses in that state.
