Sports merchandising giant Fanatics is moving from jerseys to event contracts, officially launching Fanatics Markets this week in 24 US states.
The platform, powered by Crypto.com, allows users to trade on outcomes across sports, finance and economics, with plans to expand into pop culture and climate early next year.
The rollout marks Fanatics as the first major US sportsbook operator to switch on a full-scale prediction market, beating rivals DraftKings and FanDuel to the punch. The product utilizes the CFTC-registered derivatives venue CDNA (owned by Crypto.com) for pricing and execution, while Fanatics controls the front-end interface and wallet integration.
The First Mover
Phase one went live on 3 Dec 2025 in states including Alaska, Delaware and Utah, with major markets like California, Texas and Florida coming online over the next 48 hours.
Fanatics, which generated approximately $8.1bn in revenue in 2024, is betting it can convert its massive merchandise database into trading volume. While DraftKings has acquired the exchange Railbird, and FanDuel is building a product with CME Group, both remain in the preparation phase. Meanwhile, Crypto.com is aggressively positioning itself as the infrastructure layer for the sector, having already signed integrations with Truth Social, Underdog and MyPrize.
Regulatory Headwinds
Fanatics’ debut lands as the sector hits a volatile watershed. Regulated exchange Kalshi recently secured a partnership with CNN to integrate event pricing into news coverage, validating the market as a "real-time poll." However, the model faces stiff resistance.
State regulators in Connecticut and Nevada have issued cease-and-desist orders against prediction platforms, including Fanatics' partner Crypto.com, arguing that event contracts often function as unlicensed sports gambling. This creates a patchwork map where CFTC-supervised products operate in some states that ban traditional sportsbooks, even as gaming commissions fight to retain control.
For now, Fanatics is banking on the "safe and compliant" regulatory shield of the CDNA license. But as trading volumes swell, Kalshi and Polymarket cleared nearly $10bn last month alone, the line between federal derivatives oversight and state gambling laws is becoming the primary battleground.
