The sports betting industry, which has taken the world by storm over the past decade, has taken another profound step forward, potentially changing it forever. Earlier this month, via a partnership with Crypto.com, digital sports platform Fanatics launched a prediction market called Fanatics Market that is already operating in several states. While known initially for merchandise and collectibles, Fanatics has also expanded into the sports betting and iGaming space. It has now taken another step by launching a prediction platform, going one step further than competing sportsbooks.
Of course, prediction markets themselves aren’t a new entity. Companies like Kalshi and Polymarket have found success in recent years by allowing users to bet on global financial and cultural events.
However, while other sportsbooks have considered prediction markets, Fanatics is the first to take that leap. Ultimately, the Fanatics Markets platform will go beyond sports and finance predictions, expanding the prediction market into new territory, which will set a high bar for any sportsbook or similar platform following its footsteps.
Multiple Phases
The Fanatics Market platform is being rolled out in multiple phases. The first phase is already complete, as the site is live on both Android and iOS devices. Currently, users in Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota, and Utah are the only ones with access. The prediction markets available at Fanatics right now are focused primarily on sports, politics, and finance markets.
However, the next phase will add more markets and more geographies. By early next year, Fanatics will also have prediction markets related to stocks, cryptocurrency, technology, climate, and pop culture events. There will also be more than a dozen new states added. The states of Alabama, California, Florida, Georgia, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina, Texas, Washington, and Wisconsin will soon have access to Fanatics Markets as well.
Beat the Competition
As noted by casino.com, Fanatics’ launching a prediction market is such a big deal because the company was able to beat its competitors to the punch. The likes of DraftKings and FanDuel have long been industry leaders among mobile and online sportsbooks. The assumption is that those would be the two platforms leading the way when sportsbooks start to expand and include market predictions as part of their offering.
In fact, both DraftKings and FanDuel have already taken steps toward making that happen. In October, DraftKings acquired Railbird, an event-based contract exchange that operates in all 50 states and focuses on events like elections, inflation rates, and weather patterns. Similarly, FanDuel announced in November a partnership with CME Group that would allow the popular sportsbook to launch a prediction markets platform by the end of the year.
Both DraftKings and FanDuel were no doubt stunned when Fanatics was able to launch its prediction market platform before either of them got their prediction market platform off the ground. Even if it takes time for Fanatics to make every market available in every state, they still have a leg up among sportsbooks trying to move into that space.
The Road Ahead
Despite getting a head start in the prediction market and setting a high bar for its competitors, Fanatics doesn’t necessarily have an easy road ahead. It’s only a matter of time until DraftKings, FanDuel, and other sportsbooks enter the same space. The predictions market figures to be a big space, much like mobile sports betting. That means there will ultimately be several entities fighting hard for customers. There will come a day when Fanatics will have to prove that its predictions platform is the best, not just the first.
It’s also important to note that as a company that’s been primarily focused on sports, albeit in a multitude of ways, Fanatics is entering uncharted territory. They won’t be competing exclusively with other sportsbooks like DraftKings and FanDuel. Companies like Kalshi and Polymarket are established entities in the space that Fanatics is trying to unseat. That could prove to be easier said than done, even with all that Fanatics has accomplished in the sports industry.
Nevertheless, Fanatics has taken the first step toward overcoming the challenges ahead of it. The launch of Fanatics Market was the first of its kind by an online sportsbook and made waves within the industry. That alone is a great accomplishment that raises the bar for competitors. In other words, other sportsbooks are now fighting to catch up with Fanatics.