Fanatics Launches Prediction Market in 24 States, Aiming to Merge Sports Fandom With Trading

Fanatics, a global leader in sports merchandise and fan engagement, has officially launched its prediction market platform, Fanatics Markets, in 24 U.S. states, including major markets like California, Texas, Florida, and Washington. The platform, powered by Crypto.com's CFTC-registered derivatives exchange, allows users to trade on outcomes in sports, politics, finance, and culture. It is part of a broader push by Fanatics to expand into financial products and deepen its connection with sports fans according to the company announcement.

The launch follows a strategic partnership with Crypto.com and a July 2025 acquisition of Paragon Global Markets, a CFTC-registered introducing broker. Fanatics Markets offers a user-friendly interface for trading contracts on events ranging from sports scores to economic indicators, with real-time data and institutional-grade security provided by the partner exchange as reported by Crypto.com.

. The app is now live in 10 states, with phased rollouts planned in the coming days.

Phase One of the platform covers contracts related to sports, economics, and politics, while Phase Two, launching early next year, will expand into crypto, IPOs, climate, pop culture, tech/AI, and more. The platform emphasizes consumer protection, offering tools for setting deposit limits, session controls, and self-exclusion options to promote responsible trading according to company statements.

The Strategic Partnership with Crypto.com

Fanatics Markets is built in partnership with Crypto.com, a leader in regulated digital assets and derivatives trading. The collaboration enables Fanatics to leverage Crypto.com's CFTC-registered derivatives infrastructure to offer a secure and compliant trading experience to users. Travis McGhee, Global Head of Predictions at Crypto.com, emphasized that the partnership allows them to "reach a broader audience through innovative platforms like Fanatics," reinforcing their leadership in regulated prediction markets as stated in the company announcement.

This partnership also allows Fanatics to maintain control over the user experience while relying on institutional-grade security and regulatory compliance from Crypto.com. The combination of Fanatics' deep roots in sports and fan engagement with Crypto.com's technical expertise positions the platform to target a mainstream audience interested in both sports and financial markets according to the company's strategic plan.

Regulatory Landscape and Market Potential

Prediction markets operate in a patchwork of U.S. regulations, with availability limited to 24 states where Fanatics is currently licensed. CEO Michael Rubin acknowledged that the remaining 27 states represent untapped markets with strong demand despite regulatory challenges. The company's long-term strategy includes expanding into states like California and Texas, where sports betting is legal but prediction markets are not as reported by industry analysts.

Fanatics is competing with existing platforms like Kalshi, Polymarket, and DraftKings Predictions, which have seen significant adoption over the past year. However, Fanatics' entry into the space is notable due to its established brand and existing user base. The company aims to bring prediction markets to a broader audience by integrating them into its ecosystem of merchandise, tickets, and gaming according to Seeking Alpha.

. For investors, the move signals Fanatics' ambition to become a full-ecosystem player in the sports and entertainment space. The company's recent acquisition of Paragon Global Markets and its regulatory clearance from the CFTC highlight its commitment to entering new markets responsibly. The inclusion of crypto-related contracts in 2026 also positions Fanatics to capitalize on the expanding intersection of traditional finance and digital assets as detailed in the company's press release.

What This Means for Investors and the Market

Fanatics Markets represents a new revenue stream for the company, which already operates in merchandise, collectibles, and sports betting. By expanding into prediction markets, Fanatics is diversifying its offerings and tapping into a growing sector that blends sports fandom with financial engagement. The platform's phased rollout and regulatory focus suggest a careful approach to scaling the business.

Risks to the Outlook

Despite the strategic advantages, Fanatics Markets faces risks from regulatory uncertainty and market competition. Prediction markets are legal in only a fraction of U.S. states, and federal legislation could further limit the platform's reach. Additionally, the presence of well-established platforms like Kalshi and Polymarket poses a challenge in terms of user acquisition and engagement.

The company's success will also depend on how well it integrates the prediction market into its broader ecosystem. While the shared wallet and ecosystem access are promising features, consumer adoption will rely on user education and perceived value. Fanatics will need to balance innovation with responsible trading practices to maintain trust and compliance in the long term as reported by CNBC.

Conclusion

Fanatics Markets is a bold expansion into the prediction market space, leveraging the company's strengths in sports and fan engagement. The partnership with Crypto.com provides a secure and compliant foundation, while the phased rollout allows the company to test and refine its offering. As the platform grows, it has the potential to reshape how fans interact with sports and cultural events, blending fandom with financial participation in a novel and accessible way according to the company's official statement.