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Fanatics CEO Michael Rubin confirmed during a CNBC interview that the operator will launch Fanatics Predicts within the coming weeks, joining major sportsbook operators DraftKings, FanDuel, PrizePicks and Underdog Fantasy in entering the prediction markets industry.
In a sit-down interview with CNBC’s Sara Eisen, Rubin announced Fanatics Betting and Gaming’s entry into prediction markets but did not specify whether the company would launch its own predictions marketplace to facilitate event contract trading or if sporting event-related contracts would be available to consumers.
Partnership with Crypto.com
The operator has partnered with Crypto.com to provide technological services for Fanatics Predicts, following a similar approach by Underdog Fantasy, which began offering sports prediction markets with Crypto.com in September.
Rubin praised Polymarket Founder and CEO Shayne Coplan and Kalshi Co-Founder and CEO Tarek Mansour, calling them “studs,” but expressed confidence that sportsbook operators such as Fanatics Betting and Gaming are better positioned for success in the prediction markets space.
Polymarket has taken steps to counter potential competition from established sportsbook operators. On November 11, PrizePicks formed a strategic collaboration with the predictions marketplace to merge its event contracts onto the operator’s US platform.
AGA Membership Questions
Following partnerships and acquisitions aimed at entering the prediction markets industry, FanDuel and DraftKings both relinquished their membership with the American Gaming Association (AGA) on November 18. FanDuel’s entry stems from its partnership with CME Group, while DraftKings acquired Railbird Technologies.
The AGA has been outspoken in its efforts to combat unregulated prediction market expansion. At the time of writing, Fanatics remains listed as an AGA member.
DraftKings and FanDuel confirmed to Global Gaming Insider that their goals no longer align with the values of the AGA. The trade association stated it “expects to maintain close ties” with both operators while continuing to promote legal and regulated gaming.
State-Level Regulatory Concerns
Multiple states have expressed opposition to prediction market offerings, including Pennsylvania, Michigan, Maryland, Ohio and Arizona. Rubin noted that Fanatics is currently available in 23 states across the US, leaving 27 other markets where he believes consumers desire a Fanatics product.
On November 20, the Maryland Lottery and Gaming Control Commission issued a warning to operators currently licensed or seeking to enter the state regarding conducting business related to prediction markets.
Source: Global Gaming Insider
