Michael Rubin, CEO of Fanatics, revealed plans during Thursday’s CNBC interview. Fanatics will launch prediction market products soon. Crypto.com partners with Fanatics for this rollout in the upcoming weeks. Consumer demand drives this expansion into sports and entertainment markets, Rubin explained. Fanatics sees prediction markets as important for their customer base. The company enters new verticals to compete with existing operators. Rubin believes Fanatics can outperform current market players.

FanDuel, DraftKings, and Fanatics possess strategic advantages in this space. These sportsbooks have large customer ecosystems and operational experience. Major operators can integrate new offerings at scale effectively. Industry leaders combine their strengths with alternative gaming formats now. These formats grew faster than anyone expected recently. Fanatics operates sports betting in only 23 states currently. The company cannot offer sportsbook services in 27 states. CNBC heard Rubin say customers want this product nationwide. Fanatics plans to serve these customers wherever possible. Laws change constantly, and Fanatics adapts its strategy accordingly. Market shifts require pragmatic responses from operators.

Rubin Admits to Misjudging the Prediction Markets’ Potential

Fantasy contests, prediction markets, and sweepstakes casinos surprised Rubin. Each format expanded rapidly during the past year. Operators must adjust their assumptions in this environment. Alternative formats create new competitive pressures across the industry. This momentum pushed Fanatics to develop prediction market products faster. The team stands ready to launch now. The Financial Times reported Fanatics-Crypto.com negotiations last week. Rubin confirmed this partnership publicly on Thursday morning. Crypto.com became the first financial derivatives marketplace offering sports contracts. The company continues expanding its distribution partner network.

Underdog collaborates with Crypto.com on recent projects. Trump Media’s Truth Social and MyPrize integrated Crypto.com contracts, too.  Hollywood.com will host prediction market products through another agreement. Crypto.com aims to reach users across multiple digital communities. Fanatics will follow regulations in each jurisdiction carefully. The product launches only where laws permit operations. The prediction market sector attracts many new entrants. Competition increases as more companies enter this space.

Major Companies Target Prediction Markets Before Year-End

Coinbase, DraftKings, FanDuel, and Polymarket plan consumer debuts soon. Operators experiment with event-based contracts to engage users differently. Entertainment and financial elements combine in these new markets. User engagement remains the primary goal for operators. Regulatory barriers still exist in multiple states. Nevada showed this when Crypto.com faced resistance recently. Crypto.com sought a preliminary injunction against the Nevada Gaming Control Board in October. Judges denied the request, and regulators ordered suspension.

Sports event contracts must stop while appeals proceed. Fanatics and Crypto.com might face similar challenges elsewhere. Kalshi leads the prediction markets movement currently. Other companies follow because of Kalshi’s success. New investment funds help Kalshi grow faster now. The company completed $1bn funding at $11bn valuation. Previous funding reached $300m at $5bn valuation earlier.