Fanatics goes live with prediction markets, surprising rivals

• Fanatics confirms 24 states for launch of its prediction markets platform
• The brand will offer culture and financial trading, as well as sports event contracts
• Fanatics’ boss believes that prediction markets are going to grow exponentially over the next 10 years

Fanatics, the sports merchandiser that is also running the Fanatics Sportsbook, has launched a prediction markets platform, beating many rival operators to the punch.

The rollout targets 24 states and also includes Texas, Florida, Washington, and California, with the company confident in the success of its latest bid to introduce a brand-new vertical.

Fanatics is betting big on prediction markets, launching in 24 states

Fanatics is not shy of trying new things, with the prediction market platform confirming finance and culture as valid efforts, but also sports event contracts, which have been challenged by multiple states, including in Nevada, Connecticut, Missouri, Massachusetts, New Jersey, and others.

Commenting on this opportunity, Fanatics Betting and Gaming CEO Matt King said: "For years, Fanatics has given fans new ways to enhance their fandom through team merchandise, collectibles, tickets, gaming, events, and more. 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."

King is confident that this is the right decision for his company, despite the pushback that mainstream prediction markets such as Kalshi are facing. In the meantime, sports betting rivals, such as FanDuel and DraftKings, have also announced plans to push forward with rival betting marketplaces.

FanDuel and DraftKings even quit the American Gaming Association over disagreement about prediction markets, which the trade group insists are illegal. King, in the meantime, has said that prediction markets are going to grow exponentially in the coming decade, and not jumping in on them early would be a mistake.

Sports event contracts are probably here to stay

This is not at all surprising, as Fanatics has previously confirmed that it would indeed be entering the prediction market space before long. The company is set to launch in California, Georgia, Texas, Florida, and Washington on Friday, wrapping up its initial stage of deployment.

How Fanatics would handle the pushback from local gaming regulators and possibly, attorneys general, remains to be seen in practice.

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