Fanatics is preparing to expand its business into the rapidly evolving prediction markets space, confirming plans to launch an event-contract product in collaboration with Crypto.com. The announcement was made public on Thursday after CEO Michael Rubin discussed the initiative during an interview with CNBC’s Sara Eisen, followed by a company spokesperson reiterating the news to SBC Americas. As the spokesperson explained, “Today on CNBC, Fanatics CEO Michael Rubin announced our plans to enter the predictions market in partnership with Crypto.com. We will have more specific details to share on timing in the coming weeks.”

At present, Fanatics has revealed very little about how the product will be structured. The company has not yet clarified whether customers will use a dedicated platform, whether sports will be the primary focus, or which states will have access once the markets go live. Rubin did point out, however, that the company is currently active in only 23 states and believes the remaining 27 contain audiences eager for this type of product. His CNBC interview also highlighted his view that established sportsbooks possess a significant strategic advantage in this sector compared to platforms like PredictIt and Kalshi.

Fanatics Joins a Growing List of Operators Moving Into Event Contracts

Fanatics becomes the fifth operator to signal a move into offering sports prediction markets, following FanDuel, Underdog, DraftKings and PrizePicks. Underdog has already rolled out sports event contracts in several states since September, relying on Crypto.com as a technology services provider. The recent acceleration in activity traces back to August, when Flutter announced that FanDuel would partner with the CME Group to begin offering sports event contracts.

Other operators have moved more cautiously. BetMGM and Caesars have expressed concern over state-level objections to prediction markets and have not yet committed to entering the space. Fanatics is instead aligning itself with the operators pushing forward despite regulatory friction, including DraftKings and FanDuel, which earlier this week announced their departure from the American Gaming Association (AGA). They stated that the AGA’s policy stance on prediction markets no longer fit their strategic objectives. Fanatics, in contrast, remains listed as an AGA member, a point confirmed separately by the association and by the company.

The expansion into prediction markets comes at a moment when Fanatics is competing to strengthen its position among the top three online sports betting brands in the United States. Entering a new, fast-growing vertical is part of that strategy. Rubin summarized the company’s outlook by saying, “If there is a business that is important to our customers, we want to be in there and do it better.”

Crypto.com Expands Its Footprint as Regulators Issue Fresh Warnings

Fanatics’ partnership adds to a growing list of alliances spearheaded by Crypto.com, which last year became the first financial derivatives marketplace to offer sports contracts. It has since widened its reach through deals that integrated its offerings with Underdog, Trump Media and Technology Group’s Truth Social, U.S. social gaming platform MyPrize, and a separate agreement to power a prediction market on Hollywood.com.

Regulatory issues, however, continue to shape where and how these contracts can be offered. One of the few states where the upcoming Fanatics-Crypto.com product may be unavailable is Nevada. A judge recently denied Crypto.com’s request for a preliminary injunction against the Nevada Gaming Control Board, resulting in regulators requiring the company to halt sports event-contract activity pending appeal.

The timing of Rubin’s announcement also coincided with a wave of cautionary notices from state gaming regulators. Maryland became the latest jurisdiction to warn licensees that taking part in sports event contracts—even in markets outside state borders—could impact an operator’s licensing status. This message mirrors earlier concerns raised by regulators in other states where Fanatics currently operates.