Fanatics Becomes First Mobile Sportsbook to Launch Prediction Brand

Fanatics beat industry powerhouses DraftKings and FanDuel to the punch by becoming the first sportsbook to launch its prediction market wing.

First to Market

Most corporate executives and entrepreneurs will attest that it is better to be first than last. In the case of sportsbooks turning to the prediction market platform, Fanatics has taken that advice to heart and, as of Wednesday, launched Fanatics Markets, now live in 10 states with 14 more to follow.

From Sportsbook to Prediction Markets

The sports apparel merchandiser utilized its customer list to create Fanatics Sportsbook, correctly assuming that many of those who purchase sports merch would be interested in betting on the games they watch. However, they have now shifted their focus to another type of sports wagering, utilizing contract trading on a range of assets, including sporting events, tech markets, and financial derivatives.

“For years, Fanatics has given fans new ways to enhance their fandom through team merchandise, collectibles, tickets, gaming, events, and more,” Fanatics Betting and Gaming CEO Matt King said in a statement. “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.”

Acquisition of Paragon Global

Fanatics acquired Paragon Global in July, which then allowed it to join forces with Crypto.com and ultimately go to market with its Fanatics Markets brand. According to reports, the combined trading volume of prediction markets in 2025 soared to nearly $28 billion through October.

And although the likes of Kalshi and Polymarket are industry leaders, moving into sports event contract trading during the run-up to February’s Super Bowl, the introduction of derivatives exchanges in the sports prediction market is still in its infancy.

“This is really the top of the first inning on a market that’s going to grow exponentially over the next five to 10 years, so we’re not worried about being a couple months behind [competitors],” King said on CNBC’s “Squawk on the Street” last Wednesday.

Fanatics Roaming Where Others Won’t

DraftKings and FanDuel have been pointing to a launch of their own brands in the prediction market for several months, but both companies have vowed to steer clear of states that have legalized sports betting to remain in the good graces of state gaming regulators who have waged legal warfare with the prediction markets.

Federal Oversight and Legal Battles

Prediction markets are governed federally by the Commodity Futures Trading Commission, and companies like Kalshi have argued in state and federal courts that they do not need to abide by state gaming laws because the CFTC’s federal authority supersedes the states’ authority. Thus far, the prediction markets have notched early legal victories, but the ultimate decision will likely rest with the Supreme Court’s ruling when it arrives a few years from now.

Until then, Fanatics has decided that it would dip its toe into states that have legalized sports betting, but only those where it does not have a presence. Delaware, Maine, New Hampshire, and Rhode Island are those states, but all have exclusive agreements with one sports betting company, except for Maine, whose tribal control is in conjunction with Caesars and DraftKings.

Fanatics Markets can be found in Alaska, Hawaii, Idaho, North Dakota, South Dakota, and Utah, while pending launches are happening in Alabama, Minnesota, Nebraska, New Mexico, Oregon, Washington, Wisconsin, and of course, the two biggest markets in the nation, California and Texas.