In a recent interview with CNBC, Fanatics CEO Michael Rubin announced that the company is gearing up to launch prediction markets in the coming weeks. This initiative comes in collaboration with Crypto.com, aimed at expanding Fanatics’ presence beyond its current 23 states into the remaining 27. Rubin expressed disbelief over the persistence of sports betting and gaming loopholes that have allowed such ventures to thrive despite unclear regulatory frameworks.
Rubin highlighted the lack of explicit regulation surrounding prediction markets, noting that while the Commodity Futures Trading Commission (CFTC) has permitted the expansion of sports markets through self-certification, no firm position has been established regarding their legality. Many states have raised legal challenges concerning prediction markets, yet definitive rulings remain absent, which has created a gray area in which Fanatics plans to operate. “If the regulatory environment says we can do this, then we’re gonna do it. And if it changes, then we’ll change with it,” Rubin stated.
The CEO expressed astonishment at the survival of daily fantasy sports (DFS), prediction markets, and sweepstakes casinos, stating, “I would not have believed that a year ago, all these fantasy players, prediction markets, sweepstake casinos…I didn’t think any of these things would still be going, but I was wrong.” Fanatics intends to capitalize on this regulatory ambiguity, with Rubin indicating excitement about the upcoming launch of their predictions business.
Rubin also voiced confidence that Fanatics, alongside industry giants like FanDuel and DraftKings, is strategically situated to attract users away from established platforms like Kalshi and Polymarket. “I think the winners of this are going to be the sportsbooks,” he explained, emphasizing the significant advantages gained from an already large customer base and extensive industry experience.
Despite tension in the field—evident from recent critiques by Polymarket’s CEO Shayne Coplan—Rubin maintained a diplomatic stance, acknowledging Coplan and Kalshi CEO Tarek Mansour’s capabilities while expressing his belief in the sportsbooks’ long-term success.
However, the landscape for prediction markets is fraught with legal scrutiny. Recently, New York became the eighth state to issue a cease-and-desist letter to Kalshi. Other states have similarly hinted at legal actions against Fanatics’ partner, Crypto.com, which has led to Fanatics withdrawing operations from Nevada. FanDuel and DraftKings have followed suit, relinquishing sports betting licenses in states like Nevada as they prepare to launch their prediction market services.
Fanatics currently operates in several states embroiled in legal battles over prediction markets, including Maryland, New York, New Jersey, Arizona, Ohio, Illinois, and Massachusetts. Whether the company will relinquish its sports betting licenses for the sake of prediction markets remains uncertain. Rubin acknowledged the unpredictable nature of the regulatory environment, but the tempting prospect of launching in major states such as California, Texas, and Florida is driving the company’s current ambitions.
