Fanatics Launches Prediction Market in 24 States
Sporting goods retailer Fanatics said Wednesday that it is launching Fanatics Markets, its own prediction market, in 24 states this week, including California, Texas, Florida and Washington.
According to Fanatics, the platform will allow people to trade events across sports, finance and culture and will be rolled out across various segments across the country in the next few days.
The first phase, which starts on Wednesday in 10 states, includes contracts for sports, finance, business and politics. Early next year, Fanatics will expand into contracts for crypto, stocks, technology, music and more, it said.
“For years, Fanatics has offered fans new ways to grow their fandom through team merchandise, collectibles, tickets, games, events and more,” Matt King, CEO of Fanatics Betting and Gaming, said in a statement. “Now, with Fanatics Markets, we offer fans a safe and intuitive way to engage with the moments driving sports and culture and choose a side and profit when their prediction is right.”
Prediction markets like Polymarket and Kalshi are becoming increasingly popular due to the legalization of online sports betting. According to data from Crypto.com, total trading volume on prediction markets this year reached nearly $28 billion through October.
This increase has led to sportsbooks and others in the industry setting up their own event contracting platforms.
“This is truly the peak of the first innings in a market that will grow exponentially over the next five to 10 years, so we’re not worried about being a few months behind.” [competitors]” King said Wednesday on CNBC’s “Squawk on the Street.”
DraftKings announced its entry into the prediction markets through the acquisition of Railbird in October. FlutterThe FanDuel-owned company said in November that it would unveil a prediction markets platform in collaboration with CME Group, scheduled to launch this month.
Fanatics CEO Michael Rubin told CNBC last month that the company would be entering the prediction markets space.
According to Fanatics, prediction market pricing is offered by Crypto.com and customers can access the entire Fanatics ecosystem through a shared wallet. You can also set deposit limits and session limits.
Fanatics Markets launches Wednesday in Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota and Utah.
The launch will take place on Thursday in Alabama, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina and Wisconsin.
It will go live on Friday in California, Florida, Georgia, Texas and Washington.
“For us, this was just a logical extension in terms of something new that sports fans want to have access to,” King said.
—CNBC’s Contessa Brewer and Jessica Golden contributed to this report.
