US sportsbook Fanatics joins prediction play surge

Fanatics is the latest American sportsbook set to enter the prediction market, on the back of a new deal with global platform Crypto.com set to begin in the next few weeks.

Fanatics, which has around 5 per cent of the American online sports betting market by handle, is licensed in 23 states and will use its prediction market solution to target the remaining 27 American states.

CEO Michael Rubin confirmed that it would follow in the steps of the two market leaders, FanDuel and DraftKings, in partnering with a third party to offer sporting event futures contracts.

 “If there is a business that is important to our customers, we want to be in there and do it better,” Rubin told CNBC.

Prediction markets, led by Kalshi, have exploded in popularity in the United States as because they are seen as financial contracts, they don’t require the state-by-state regulation that sports betting does.