Fanatics CEO Michael Rubin signaled a major strategic shift for the company during a Thursday morning appearance on CNBC, confirming that Fanatics is close to debuting a prediction market product.
The planned rollout will be made in collaboration with Crypto.com in the coming weeks, he revealed.
Rubin described the initiative as a natural extension of Fanatics’ broader push to align with consumer demand across sports and entertainment markets.
He added that Fanatics views prediction markets as an increasingly relevant segment for its customers, framing the move as part of the company’s larger philosophy of entering important verticals and attempting to outperform existing operators.
As Rubin pointed out, established sportsbooks such as FanDuel, DraftKings, and Fanatics hold considerable strategic advantages because of their expansive customer ecosystems, accumulated experience, and ability to integrate new offerings at scale.
His comments underscored the industry’s efforts to combine the strength of major operators with the growing presence of alternative gaming formats, which he said have expanded faster than anticipated.
Rubin also emphasised that Fanatics is active in only 23 states for sports betting, leaving substantial territory where the company does not operate a sportsbook.
He told CNBC: “[We’re] only in 23 states, so there’s 27 states that we’re going to launch in that we think, you know, customers want this product and we want to give it to the customers.”
Fanatics intends to adapt its product strategy as laws change, identifying this flexibility as a pragmatic response to shifts in the market.
Rubin underestimated success of prediction markets
Rubin acknowledged that he previously underestimated the durability of fantasy-style contests, prediction markets, and sweepstakes casinos, each of which has expanded quickly over the past year.
He described the current environment as one that has required operators to adjust their assumptions, stating that the persistence of these alternative formats has created new competitive incentives across the industry.
According to Rubin, this momentum provided the drive for Fanatics to accelerate development of its own prediction market product, which he said the team is now prepared to launch.
The Financial Times reported last week that Fanatics and Crypto.com had already been in negotiations, offering early indications of the partnership that Rubin publicly confirmed.
Crypto.com, which became the first financial derivatives marketplace to offer sports contracts last year, has continued widening its network of distribution partners.
Its recent activity includes collaborations with Underdog and integration of its contracts into additional platforms, ranging from the Trump Media–owned Truth Social to the US-based social gaming company MyPrize.
The company also formalised an agreement to host a prediction market product on the entertainment site Hollywood.com, reflecting a strategy aimed at broadening its user base and increasing visibility across multiple digital communities.
Rubin said the company plans to expand into this area and will adjust its approach based on applicable regulations, adding that it intends to offer the product to customers in jurisdictions where it is permitted.
Crypto.com’s partnership expansion and Fanatics’ upcoming launch both arrive as the prediction market sector grows increasingly crowded.
Companies rapidly targeting the prediction markets space
Several major companies appear positioned for consumer-facing debuts before year’s end, including Coinbase, DraftKings, FanDuel, and Polymarket.
Industry observers have noted that more operators are experimenting with event-based contracts as they seek new ways to engage users in markets that combine entertainment and financial elements.
Despite the momentum behind these initiatives, regulatory barriers in multiple states remain a salient factor.
In Nevada, Crypto.com encountered resistance after seeking a preliminary injunction against the Nevada Gaming Control Board in October.
A judge denied its request, and regulators subsequently ordered the company to suspend sports event contracts while an appeal proceeds.
The directive highlighted the delicate regulatory environment in certain states, and highlights the possibility that Fanatics and Crypto.com could face similar challenges depending on jurisdiction.
Kalshi has been at the forefront of the prediction markets movement, and its success has been the catalyst for continued expansion into the space by other companies.
The company just scored new investment funds that will allow it to grow more quickly. It announced the completion of a $1bn funding round, at a valuation of $11bn.
This follows its previous funding round of $300m at a valuation of $5bn.