The platform, which allows users to trade contracts on the outcomes of events ranging from sports and culture to finance and politics, represents the company’s latest diversification effort beyond merchandise and traditional sports betting. The staggered launch began Wednesday in 10 states, with further expansion into major markets, including California, Florida, Texas and Washington, scheduled through Friday.
Fanatics joins a rapidly crowding field of operators seeking to capitalize on the “event contract” model popularized by startups like Kalshi and Polymarket. Major competitors are similarly pivoting toward this asset class. DraftKings recently entered the space via its acquisition of Railbird, CNBC reported, while Flutter Entertainment’s FanDuel has announced a partnership with CME Group to debut a similar product this month.
Matt King, CEO of Fanatics Betting and Gaming, dismissed concerns about market saturation, telling CNBC that the industry is only at the “top of the first inning” regarding its long-term growth trajectory. Technically, the platform will leverage pricing data from Crypto.com and utilize a shared digital wallet, allowing users to move funds across the broader Fanatics ecosystem.
In the same way that traditional stock markets allow investors to price a company’s future performance, prediction markets allow users to price the probability of real-world events, effectively turning news cycles into tradable assets. In a concurrent development underscoring the sector’s rapid capitalization, prediction market pioneer Kalshi has secured $1 billion in Series E funding, valuing the company at $11 billion, PYMNTS reported earlier this week. The round, led by investment firm Paradigm, follows a surge in platform activity, with trading volumes growing more than 1,000% year over year to exceed $1 billion weekly. The funding announcement coincides with moves by the aforementioned competitors DraftKings and FanDuel as well as Robinhood, all of which are actively expanding their presence in the derivative event-contract space.
The Fanatics Markets app launched Wednesday in Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota and Utah, with the following states launching soon: Alabama, California, Florida, Georgia, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina, Texas, Washington and Wisconsin.
Advertisement: Scroll to Continue
