Fanatics, the powerhouse in sports merchandising and collectibles, is reportedly exploring an entry into the growing prediction market sector, potentially in collaboration with global cryptocurrency platform Crypto.com. This strategic pivot comes amid shifting regulatory landscapes that are making participation in prediction-based platforms more viable for major corporate players.
According to insiders familiar with the matter, discussions between Fanatics and Crypto.com remain in preliminary stages, and final decisions have yet to be made. However, the mere consideration of entering the space marks a notable shift for Fanatics, which previously distanced itself from prediction markets due to legal uncertainties.
Founded as a sports-focused e-commerce and technology company, Fanatics has grown far beyond its retail roots. With significant investments from firms like SoftBank, Clearlake Capital, and Silver Lake, the company amassed over $700 million in funding and reached a valuation of $31 billion by the end of 2022. Its expansion into digital collectibles and sports betting through its Fanatics Betting and Gaming arm has already signaled a broader ambition in the digital sports economy.
Now, as regulatory agencies begin to outline clearer rules for prediction-based platforms, Fanatics appears ready to reassess its earlier caution. The U.S. Commodity Futures Trading Commission (CFTC), which previously cracked down on prediction markets like Polymarket for operating without proper authorization, has recently adopted a more lenient stance. In September, the CFTC issued a no-action letter that allowed Polymarket to acquire QCX and resume operations in the U.S. This decision has been widely interpreted as a sign that prediction markets, when structured within regulatory guidelines, can co-exist with federal oversight.
In parallel, Kalshi—another key player in the sector—has emerged stronger after multiple legal battles concerning whether its contracts constitute gambling or financial instruments. Recent courtroom victories have further legitimized Kalshi’s position under federal jurisdiction, paving the way for broader institutional engagement across the industry.
Crypto.com, the potential partner in Fanatics’ latest endeavor, has also been expanding its reach into regulated prediction markets. The exchange has supported several platforms in launching event-based contracts, partnering with consumer-facing brands like Underdog and Hollywood.com to provide backend infrastructure for their prediction offerings.
Though neither Fanatics nor Crypto.com have publicly confirmed the partnership, the timing aligns with a wider surge of interest in the sector. In recent weeks, Polymarket has announced high-profile collaborations, including deals with the UFC—integrating predictions into live events—and Yahoo Finance, which is now displaying prediction odds as part of its market analysis.
This intersection of sports, finance, and blockchain technology is creating a unique ecosystem of predictive engagement. For Fanatics, whose core audience is already deeply invested in sports outcomes and statistics, the move into prediction markets could be a natural extension of its brand. By offering fans a regulated, gamified environment to forecast real-world events—ranging from sports results to political elections—the company could deepen user engagement while tapping into a rapidly growing revenue stream.
Moreover, the convergence of crypto infrastructure and prediction markets could redefine how users interact with data and entertainment. Crypto.com’s blockchain capabilities offer a transparent, decentralized framework for executing prediction contracts, which can help build trust among users wary of traditional betting platforms.
As regulatory clarity continues to emerge, more legacy brands may follow Fanatics’ lead, seeing prediction markets not as fringe products but as legitimate financial instruments and engagement tools. The potential for tokenized prediction contracts, tied to real-world events and governed by smart contracts, offers a future where speculation and forecasting become integral parts of both financial markets and digital entertainment.
For Fanatics, entry into this arena could also provide valuable user data, further fueling its broader ecosystem of sports merchandise, collectibles, and fan experiences. The ability to cross-promote prediction products with fantasy sports, NFT collectibles, and even live game broadcasts presents a powerful synergy that could redefine the fan experience.
It’s also worth noting that younger audiences, particularly Gen Z and millennials, are increasingly drawn to interactive, gamified financial platforms. Prediction markets offer an engaging platform that blends entertainment, speculation, and strategy—an attractive proposition for the digitally native demographic that Fanatics already targets.
As the sector matures and institutional money flows in, prediction markets may evolve beyond simple wagers on sports or election outcomes. Future contracts could include forecasts on major economic indicators, corporate earnings, or even cultural trends—effectively turning public sentiment into a tradable asset class.
In this environment, companies like Fanatics have a unique advantage. With an established brand, a loyal user base, and access to data-rich environments, they are well-positioned to build trusted, scalable platforms that could dominate this emerging market.
While much remains speculative, and the details of a Fanatics–Crypto.com partnership are yet to be finalized, the broader trend is clear: prediction markets are moving from the fringes to the mainstream. As regulation aligns with innovation, the next wave of digital engagement could be shaped by the very companies that once focused solely on jerseys and trading cards.