Fanatics Becomes Latest Sportsbook To Enter Prediction Markets

Fanatics became the latest sports betting firm to get in the prediction markets business. They announced a partnership with Crypto.com on Wednesday. The Fanatics Markets platform allows users to enter into event contracts on sports, finance, and culture. The company joins FanDuel and DraftKings in the industry. The move comes after online sportsbooks faced increased competition from companies like Kalshi and Polymarket. “For years, Fanatics has given fans new ways to enhance their fandom through team merchandise, collectibles, tickets, gaming, events, and more,” Fanatics Betting and Gaming CEO Matt King said. “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.” Platform Launches In Numerous States The deal follows Fanatics’ acquisition of Paragon Global Markets in July. Paragon is federally registered as an introducing broker with the Commodity Futures Trading Commission. The platform initially launched this week in Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota, and Utah. That was to be followed by another 14 states, including California, Florida, Texas, Oklahoma, and others. The company is offering sports prediction markets in several states with a single betting operator, including Florida, Oregon, Delaware, Rhode Island, and New Hampshire. Fanatics Market will also be available in states only with legal in-person betting, including Washington and Mississippi. Move Comes As Industry Faces Increased Pushback The partnership grants Crypto.com access to a large customer base across multiple states, enabling it to compete with Kalshi and Polymarket. “Crypto.com was the first to launch sports prediction markets, and our reach continues to grow through innovative partnerships with top-tier platforms such as Fanatics,” said Travis McGhee, the company’s global head of predictions. “We could not be more proud to be the partner of choice for Fanatics, and together we will provide fans with a safe and compliant way to access prediction markets.” Available options were expected to be available in two phases. Phase 1 went live on Wednesday with event contracts for sports, finance, economics, and politics. Phase 2 launches early next year and expands into cryptocurrencies, stocks, pop culture, technology, and more. Fanatics’ addition to the industry comes as prediction markets are facing increased scrutiny from state gaming regulators. After initially winning in court to continue operating in some states, Kalshi lost lawsuits in Nevada and Maryland. Federal lawmakers also recently circulated a draft letter criticizing the industry and pointing to a lack of consumer protections.