Fanatics Markets debuts in 10 states through its Crypto.com partnership, offering event trading across sports, finance, and culture while navigating growing regulatory scrutiny in the prediction-market space.
Fanatics Markets, which launched in 10 states on Wednesday and will extend to 14 more this week, is available through a collaboration with Crypto.com.
Fanatics Markets is the first major sports betting provider to launch an event-trading product.
As CNBC originally reported, the company launched Fanatics Markets in ten markets on Wednesday. Fanatics CEO Michael Rubin recently told CNBC that the product would be available through a partnership with Crypto.com.
Fanatics Markets provides event trading for sports, finance, and culture. Next year, it plans to grow into other markets such as cryptocurrency, equities, technology, and music.
ALSO READ: Fans, Betting & Integrity: The New Crisis in Sports
The drive by fans into prediction markets is merely another step in the growing conflict between authorities, the sports betting business, and prediction markets. The Commodity Futures Trading Commission regulates prediction markets, and companies such as Kalshi have taken advantage of this to offer event trading across the country.
“This is really the top of the first inning on a market that’s going to grow exponentially over the next five to ten years, so we’re not concerned about being a couple months behind,” Fanatics Betting and Gaming CEO Matt King said on CNBC’s “Squawk on the Street.”
State regulators have objected, claiming that the push into contracts for sporting events amounts to unlicensed gambling. Numerous cases have been filed across the nation, including one in Nevada where a judge recently overturned his earlier order granting Kalshi a preliminary injunction permitting it to continue operating.
With the unknowns looming, sportsbook operators like Fanatics are taking the chance to attract consumers in states where sports betting is not permitted. Sportsbooks have been cautioned by several state regulators that entering prediction markets may jeopardize their licenses.
The location of Fanatics Markets’ debut
In states where Fanatics Sportsbook is not operational, Fanatics Markets is being rolled out. On Wednesday, those states comprised:
Courtesy:Â https://www.covers.com, https://www.casino.org, https://pechanga.net
