In a significant move for the sports and gaming sectors, sports merchandiser Fanatics has unveiled plans to launch its own prediction market, Fanatics Markets, across 24 states this week, including major markets such as California, Texas, Florida, and Washington. This innovative platform is designed to facilitate trading on a variety of events spanning sports, finance, and culture. The initial rollout kicks off in 10 states, featuring contracts related to sports, finance, economics, and politics, with additional phases set to expand the market offerings in early 2024.
Fanatics Betting and Gaming CEO Matt King emphasized the company’s commitment to enhancing fan engagement, stating, “For years, Fanatics has given fans new ways to enhance their fandom through team merchandise, collectibles, tickets, gaming, events, and more. Now, with Fanatics Markets, we’re giving fans a safe, and intuitive way to engage with the moments that move sports and culture, and to pick a side and profit along the way if their prediction is correct.”
The rise of prediction markets has gained momentum, particularly following the surge in legalized online sports betting. Existing platforms like Polymarket and Kalshi have witnessed significant interest, prompting sportsbooks and industry players to develop their own event contract options. King noted during an interview on CNBC that the current phase represents merely the beginning of what is expected to be a rapidly growing market over the next five to ten years, indicating confidence in Fanatics’ timing despite competition from businesses such as DraftKings, which announced their entry into prediction markets in October through the acquisition of Railbird, and Flutter-owned FanDuel, which revealed plans for a prediction market platform in partnership with CME Group.
In preparation for the launch, Fanatics has partnered with Crypto.com to provide pricing for the prediction market. Customers will also benefit from a shared wallet that grants access to various services across the Fanatics ecosystem, alongside features that allow them to set deposit and session limits.
The rollout of Fanatics Markets is strategically segmented, starting with states that include Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota, and Utah on Wednesday. Subsequent launches are scheduled in Alabama, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina, and Wisconsin on Thursday, followed by California, Florida, Georgia, Texas, and Washington on Friday.
King remarked on the strategic importance of entering the prediction market as a logical progression for the company, catering to the evolving needs and interests of today’s sports fans. As Fanatics solidifies its presence in this burgeoning sector, its competitive edge will hinge on the ability to engage users through innovative and accessible platforms.
