Fanatics is looking to potentially join fellow sports betting operators in the prediction market space.
Key Takeaways
- Fanatics is reportedly in early discussions with a federally regulated prediction market platform.
- Fanatics operates a sportsbook in 23 U.S. states.
- Competitors FanDuel and DraftKings recently announced forays into the event contract space.
The sports merchandising company that also runs online sports betting is having discussions about a partnership with Crypto.com, according to the Financial Times. The potential agreement is reportedly still in the early stages, and neither company is publicly discussing the matter.
These talks come at a time when several of Fanatics Sportsbook’s competitors are getting involved in event contract trading for sports, entertainment, politics, and more.
Weighing regulatory issues
FanDuel announced on Wednesday that it’s launching a prediction market platform in December through derivatives exchange CME Group. DraftKings acquired Railbird and expects to offer event outcome markets by early 2026.
Other sports betting operators, like BetMGM, Caesars, and PENN Entertainment, have shown little interest in starting prediction platforms. All operators have to weigh regulatory issues in their legal wagering jurisdictions.
FanDuel will not make its prediction platform available in states where its sportsbook operates.
Fanatics Sportsbook operates in 23 U.S. states and Washington, D.C. The merchandise company continues to expand on a global scale.
Partnerships and legal trouble
Crypto.com, a platform regulated by the Commodity Futures Trading Commission, began offering sports event contracts in February and operates in 49 U.S. states. The company has run into legal issues, including cease-and-desist orders and lawsuits, in legal sports betting states Nevada, New Jersey, Arizona, Illinois, and Maryland.
Crypto.com created a partnership with daily fantasy sports operator Underdog, which offers Crypto.com’s prediction markets on its app.
Kalshi became the first prediction market platform to gain federally regulated access in the U.S. last year during the 2024 Presidential Election. Trading exchange Robinhood partnered with Kalshi to offer political and sports markets. Polymarket, a global exchange, is expecting a relaunch in the U.S. after leaving the market in 2022 over regulatory issues.
