Fanatics begins 24-state prediction markets rollout

Summary

Fanatics launched Fanatics Markets on 3 December, beginning a phased rollout of a CFTC-regulated prediction markets app across 24 US states. Phase One went live in 10 states (Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota and Utah) with a further 14 states to follow “soon” (including California, Texas and Florida). The platform lets users trade event contracts across sports, finance, economics and politics, with plans to expand into crypto, stocks/IPOs, climate, pop culture, tech/AI, movies and music in Phase Two early next year.

The service runs via a strategic tie-up with Crypto.com | Derivatives North America (CDNA), a CFTC-registered exchange and clearinghouse that will supply underlying markets and pricing while Fanatics retains full control of the app’s user experience. Fanatics also strengthened its regulatory position earlier in 2025 by acquiring Paragon Global Markets, a federally registered CFTC introducing broker.

Key Points

Launch date: Fanatics Markets went live on 3 December 2025 in an initial 10 states.
24-state plan: Phase One (10 states) already live; Phase Two will add 14 more states soon, covering major markets such as California, Texas and Florida.
Product scope: Event contracts span sports, finance, economics and politics now, with Phase Two adding crypto, stocks/IPOs, climate, pop culture, tech/AI, movies and music.
Regulatory setup: Partnership with CFTC-registered Crypto.com | Derivatives North America supplies markets/pricing; Fanatics controls the UX and mobile apps (iOS/Android).
Regulatory backing: Fanatics acquired Paragon Global Markets to bolster compliance credentials with the CFTC.
Market context: Fanatics is positioning itself against incumbents like Kalshi and Polymarket and leveraging a reported ~US$25bn valuation and a large existing customer base.
Risks and contention: Prediction markets benefit from a different federal regulatory route than state sports betting, but the approach remains legally and politically contested in some jurisdictions.

Why should I read this?

Short version: Fanatics just threw its weight — brand, money and users — into prediction markets. If you work in iGaming, sports betting, fintech or regulation, this will change competitive dynamics and could reshape market access in big states. It’s a fast, relevant development worth a quick skim or a deeper read if you need the detail.

Context and relevance

Fanatics’ move is notable for three reasons: it uses the CFTC derivatives route to reach more US states than state-by-state sports betting; it partners with an established exchange (CDNA) rather than building markets from scratch; and it brings a major consumer brand into a sector already attracting huge investor bets (Kalshi’s recent valuation cited as about US$11bn). The rollout signals that major sportsbook and gaming players are seeking new, potentially less state-constrained products to grow revenue — Fanatics’ gaming arm is expected by management to be a large profit driver by 2027.

Source

Source: https://next.io/news/betting/fanatics-begins-prediction-markets-rollout/