Fanatics has started launching its new prediction market platform in 24 states in the United States. The company, recently valued at about $25 billion, wants to become a big player in the growing prediction market industry. This move puts Fanatics in competition with other platforms like Kalshi and Polymarket.

The launch is happening in two steps. Phase One started on Wednesday, December 3, in ten states, and the rest of the states will be added later. This approach lets Fanatics expand its platform slowly while reaching more users who want to trade on different types of events.

Phase One and Phase Two Launch Plans

The first ten states to receive the platform are Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota, and Utah. Phase Two will add Alabama, California, Florida, Georgia, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina, Texas, and Washington. Fanatics said the second phase will happen soon.

The platform allows users to trade contracts based on the outcome of various events, including sports, finance, economics, and politics. Fanatics plans to expand Phase Two early next year to include contracts linked to cryptocurrency, stocks and IPOs, climate, pop culture, technology and AI, movies, and music.

Partnerships and Regulatory Steps

Fanatics’ new platform is supported through a partnership with Crypto.com | Derivatives North America, a Commodity Futures Trading Commission registered exchange and clearinghouse. CDNA provides the underlying markets and pricing data, while Fanatics controls the user experience and interface through its app on iOS and Android.

In July 2025, Fanatics strengthened its regulatory position by acquiring Paragon Global Markets, LLC, a federally registered introducing broker with the CFTC. These moves allow the company to offer federally regulated event trading, which can operate in more states than traditional sports betting platforms.

Targeting Untapped Markets Amid Legal Challenges

The launch follows earlier comments from Fanatics CEO Michael Rubin, who said in November that the company planned to start a prediction market platform soon. By entering big states like California, Texas, and Florida, Fanatics can offer event trading in places where regular online sports betting is still limited.

This strategy takes advantage of a rule difference. Prediction markets regulated by the CFTC can operate in more states than sports betting that is controlled by state rules. The legal situation is still complicated, though. Platforms like Kalshi and Polymarket have grown quickly, with Kalshi recently valued at $11 billion, but they still face challenges from state gambling regulators, who say sports event contracts are a form of unregulated betting.

Fanatics’ new platform goes head-to-head with these established players while using its large customer base and strong brand in merchandise, collectibles, and gaming. The company’s gaming division is ambitious, and Rubin has said it could make up 40 percent of Fanatics’ profits by 2027.