Sports merchandiser Fanatics announced Wednesday it’s launching Fanatics Markets, its own prediction market, in 24 states this week, including California, Texas, Florida and Washington.
The platform will allow people to trade on events in sports, finance and culture, according to Fanatics, and will launch in segments across the country over the next several days.
The first phase, launching Wednesday in 10 states includes contracts for sports, finance, economics and politics. Early next year, Fanatics will expand into contracts for crypto, stocks, tech, music and more, it said.
“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.”
Prediction markets like Polymarket and Kalshi have exploded in popularity on the back of legalized online sports betting. The combined trading volume of prediction markets this year reached nearly $28 billion through October, according to data from Crypto.com.
That surge has led sportsbooks and others in the industry to set up their own event contract platforms.
“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” on Wednesday.
DraftKings announced its entry into the prediction markets in October through an acquisition of Railbird. Flutter-owned FanDuel announced in November it would be unveiling a prediction markets platform in partnership with CME Group to launch this month.
Fanatics CEO Michael Rubin told CNBC last month that the company would be entering the prediction markets environment.
The prediction market’s pricing will be offered by Crypto.com, Fanatics said, and customers can use a shared wallet to access the entire Fanatics ecosystem. They’ll also be able to set deposit limits and session limits.
Fanatics Markets launches Wednesday in Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota and Utah.
It will launch on Thursday in Alabama, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina and Wisconsin.
On Friday, it will go live in California, Florida, Georgia, Texas and Washington.
“For us, this was just a logical extension in terms of something new that sports fans want to have access to,” King said.
— CNBC’s Contessa Brewer and Jessica Golden contributed to this report.
