Key Moments:
- Fanatics plans to launch event contracts in the coming weeks, according to CEO Michael Rubin.
- The company is joining DraftKings, FanDuel, Underdog, and PrizePicks as the fifth online operator in prediction markets.
- Fanatics remains an active American Gaming Association member while peers FanDuel and DraftKings have departed over policy differences.
Fanatics Set to Enter Prediction Market Arena
Fanatics has revealed plans to enter the prediction markets arena, signaling its intention to deepen involvement in this rapidly expanding sector. During an appearance on CNBC, CEO Michael Rubin shared that the launch of event contracts is expected within the next few weeks. This latest development comes amid recent discussions between Fanatics and Crypto.com, a Commodity Futures Trading Commission-regulated platform.
Rubin asserted that Fanatics, alongside other traditional sportsbooks, possesses a distinct advantage over competitors like Kalshi and PredictIt, owing to its robust brand recognition and substantial customer base.
Expanding Operator Landscape
Fanatics is set to become the fifth online gaming operator to offer prediction markets, following FanDuel, Underdog, DraftKings, and PrizePicks. Although detailed plans remain undisclosed, questions persist about whether Fanatics will pursue a standalone platform and which events will be included. Rubin indicated that Fanatics currently operates in 23 states and sees untapped demand across the remainder of the country.
This move arrives as the sector has seen heightened activity, highlighted by Flutter’s announcement of FanDuel’s partnership with CME Group. For Fanatics, which is pursuing a top-three position in the US sports betting market, expanding its portfolio through prediction markets presents a notable growth opportunity. Underdog already operates sports prediction markets in several states, leveraging a technical partnership with Crypto.com since September.
Regulatory Approach and AGA Membership
While industry players like BetMGM and Caesars have taken a cautious stance due to resistance from state regulators, Fanatics is aligning with the expansion strategies of other major sportsbooks and fantasy sports operators. Notably, FanDuel and DraftKings have exited the American Gaming Association, citing conflicts between the AGA’s perspective on prediction markets and their own ambitions for sports contract offerings.
Conversely, both the AGA and Fanatics have communicated to SBC Americas that Fanatics continues to maintain active membership, as evidenced by its presence on the AGA’s public membership listings. In contrast, FanDuel and DraftKings are no longer included.
Crypto.com’s Broadened Partnerships
Crypto.com, identified as the first financial derivatives platform to introduce sports contracts last year, has expanded its collaborations significantly. Alongside Fanatics and Underdog, the company has rolled out contracts on platforms like Truth Social, which is owned by Trump Media and Technology Group, and entered into an agreement with U.S. social gaming company MyPrize. Additionally, Crypto.com finalized a deal to offer a prediction market product on Hollywood.com.
Regulatory Obstacles in Key Markets
Nevada presents a potential challenge: after its request for a preliminary injunction against the Nevada Gaming Control Board was denied in October, Crypto.com was ordered to suspend its sports event contract offerings in the state, pending further legal review.
Rubin’s recent announcement has coincided with heightened scrutiny from gaming regulators in jurisdictions where Fanatics operates. Some regulators have issued advisories to licensees regarding participation in sports contracts. Maryland, for instance, has most recently issued written notice that engaging in sports event contracts, even in other jurisdictions, could impact an operator’s license within the state.
Market Entry Comparison Table
| Operator | Status in Prediction Markets | Relevant Partnerships |
|---|---|---|
| Fanatics | Set to launch event contracts in coming weeks | Discussed collaboration with Crypto.com |
| FanDuel | Active | CME Group |
| DraftKings | Active | — |
| Underdog | Active in several states since September | Crypto.com for tech support |
| PrizePicks | Active | — |
- Author
Daniel Williams
