Fanatics launches prediction market in 24 states

Sports trading company Fanatics announced Wednesday that it will launch Fanatics Markets, its prediction market, in 24 states this week, including California, Texas, Florida and Washington.

The platform will allow people to trade events related to sports, finance and culture, according to Fanatics, and will be launched in sectors across the country over the next few days.

The first phase, which begins on Wednesday in 10 states, includes contracts for sports, finance, economics and politics. Early next year, Fanatics will expand to include cryptocurrency contracts, stocks, technology, music and more, she said.

“For years, Fanatics has offered fans new ways to boost their fanbase through team merchandise, collectibles, tickets, games, events and more,” Matt King, CEO of Fanatics Betting and Gaming, said in a statement. “Now, with Fanatics Markets, we give fans a safe and intuitive way to engage with the moments that move sports and culture, choosing a side and profiting along the way if their predictions are correct.”

Prediction markets like Polymarket and Kalshi have gained huge popularity on the back of legal online sports betting. This has led to sports betting companies and others in the industry creating their own event contract platforms.

“This is really the top of the line in a market that will grow significantly over the next five to 10 years, so we’re not worried about falling behind by a few months.” [competitors]King said on CNBC’s “Squawk on the Street” on Wednesday.

Kings Project It announced its entry into forecasting markets in October through the acquisition of Railbird. flutterThe FanDuel-owned company announced in November that it will unveil a prediction markets platform in partnership with CME Group that will launch this month.

Fanatics CEO Michael Rubin told CNBC last month that the company will enter a prediction markets environment.

Fanatic said the prediction market prices will be provided by Crypto.com, and customers can use a shared wallet to access the entire Fanatic ecosystem. They will 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 Thursday in Alabama, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina and Wisconsin.

It will air on Friday in California, Florida, Georgia, Texas and Washington.

“For us, this was just a logical extension of something new that sports fans would want access to,” King said.

– CNBC Contessa Brewer and Jessica Golden She contributed to this report.