Sports merchandiser Fanatics announced Wednesday that it is launching Fanatics Markets, its own prediction marketplace, this week in 24 states, including California, Texas, Florida and Washington.
The platform will allow people to discuss sporting, financial and cultural events, according to Fanatics, and will launch in segments across the country over the coming days.
The first phase, launched Wednesday in 10 states, includes contracts in sports, finance, economics and politics. Early next year, Fanatics will expand its contracts to crypto, stocks, technology, music and more, it said.
“For years, Fanatics has offered fans new ways to enhance their fandom through team merchandise, collectibles, tickets, games, events and more,” Matt King, CEO of Fanatics Betting and Gaming, said in a statement. “Now with Fanatics Markets, we’re giving fans a safe, intuitive way to get involved in the moments that move sports and culture, and to pick a side and profit along the way if their prediction is correct.”
Prediction markets like Polymarket and Kalshi have exploded in popularity thanks to the legalization of online sports betting. The combined trading volume on prediction markets this year reached nearly $28 billion through October, according to data from Crypto.com.
This push has led sportsbooks and other industry players to create their own event contracting platforms.
“This is really the start of the first inning in a market that is going to grow exponentially over the next five to 10 years, so we’re not worried about being a few months behind. [competitors]” King said Wednesday on CNBC’s “Squawk on the Street.”
DraftKings announced its entry into the prediction markets in October through the acquisition of Railbird. BeatFanDuel-owned FanDuel announced in November that it would unveil a market prediction platform in partnership with CME Group, which will launch this month.
Fanatics CEO Michael Rubin told CNBC last month that the company would enter the prediction markets environment.
Prediction market pricing will be offered by Crypto.com, Fanatics said, and customers will be able to use a shared wallet to access the entire Fanatics ecosystem. They will also be able to set deposit limits and session limits.
Fanatics Markets launches Wednesday in Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota and Utah.
It launches Thursday in Alabama, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina and Wisconsin.
On Friday, it will go live in California, Florida, Georgia, Texas and Washington.
“For us, it was just a logical extension in terms of something new that sports fans want to have access to,” King said.
—CNBC Contessa Brewer And Jessica Dore contributed to this report.