In an evolving landscape of sports betting and prediction markets, Fanatics is reportedly exploring a partnership with Crypto.com to potentially enter the prediction market space. This discussion, still in its preliminary stages, highlights a significant shift as many sports betting operators are increasingly diving into event contract trading, which covers a broad range of topics including sports, entertainment, and politics.
Currently, Fanatics Sportsbook boasts operations in 23 U.S. states and Washington, D.C., positioning itself as a major player in the industry. The company is looking to broaden its offerings, particularly as competitors like FanDuel and DraftKings announce plans to launch their own prediction market platforms. FanDuel, for instance, revealed on Wednesday that it intends to start its prediction market in December through a partnership with derivatives exchange CME Group. Similarly, DraftKings has plans to roll out event outcome markets by early 2026 following their acquisition of Railbird.
However, not all operators are moving towards prediction markets. Companies such as BetMGM, Caesars, and PENN Entertainment have expressed a reluctance to engage in such platforms, mainly due to the complex regulatory landscape that varies across legal wagering jurisdictions. Notably, FanDuel has stated it will not offer its prediction platform in states where its sportsbook is operational, a reflection of these regulatory challenges.
The partnership talks between Fanatics and Crypto.com come amid a backdrop of legal scrutiny in the prediction market space. Crypto.com, which received regulatory approval from the Commodity Futures Trading Commission, began offering sports event contracts earlier this year. However, the platform has faced legal hurdles, including cease-and-desist orders and lawsuits in various states such as Nevada, New Jersey, and Maryland.
Moreover, Crypto.com has formed a collaboration with daily fantasy sports operator Underdog to integrate its prediction markets into the Underdog app. Kalshi, another player in the market, became the first federally regulated prediction market platform in the U.S. last year during the 2024 Presidential Election and has teamed up with trading exchange Robinhood to provide markets for both politics and sports. Additionally, Polymarket, a global exchange, is anticipating a re-entry into the U.S. market following regulatory setbacks in 2022.
As the competition intensifies in the sports betting landscape, with various operators assessing their strategies and navigating regulatory frameworks, Fanatics’ potential entry into the prediction markets through collaboration with Crypto.com could significantly alter the dynamics of this growing sector.
