Fanatics, a leading sports merchandise company, is venturing into the U.S. prediction market through a new partnership with cryptocurrency exchange Crypto.com, signaling a significant expansion into speculative online wagering.
Michael Rubin, CEO of Fanatics, confirmed the alliance in an interview with CNBC, indicating that the new platform could launch within weeks. He did not provide specific operational details about the product.
This strategic move aims to capitalize on the growing interest in prediction markets, which allow users to place bets on the outcomes of real-world events ranging from political elections to sporting competitions.
However, the venture faces substantial regulatory hurdles within the United States, as prediction markets are currently legal in only a limited number of states.
Rubin acknowledged this fragmented legal landscape, noting that Fanatics currently holds operational licenses in just 23 U.S. states. The remaining 27 states represent areas with high potential demand for such services.
Expanding into these untapped markets will depend heavily on obtaining necessary regulatory approvals, highlighting a key challenge for the new platform.
The collaboration with Crypto.com suggests a potential integration of crypto assets, although Rubin did not specify whether the platform would utilize blockchain-based models. Fanatics is expected to leverage its extensive experience in sports and betting.
The company’s strong ties to major sports leagues and teams indicate an initial focus on sports-related predictions, aligning with its core business.
Platforms like Kalshi and Polymarket have seen increased traction in recent years, demonstrating a growing consumer willingness to participate in forecasts about public and global events.
Industry analysts suggest that new entrants like Fanatics could foster innovation in the sector, but they also anticipate intensified regulatory scrutiny.
Fanatics’ entry reflects a broader trend, pointing to a convergence between entertainment, digital finance, and community participation. The company’s ability to navigate state regulations will be crucial for its success.