Fanatics announced its entry into prediction markets through a partnership with Crypto.com, with a launch planned for late November 2025. The strategy combines Fanatics’ newly acquired regulatory status with Crypto.com’s technical infrastructure to offer event contracts to its extensive customer base.
Fanatics Deepens Its Push Into Prediction Markets
Fanatics acquired Paragon Global Markets to secure registration with the National Futures Association (NFA) and will initially operate as an introducing broker under the brand “Fanatics Markets IB”. The company is also evaluating a transition toward futures commission merchant (FCM) status to custody customer funds directly and offer a more integrated experience, while Crypto.com expands its partner network.
Event contracts are binary instruments that allow trading on the outcome of future events, structured around simple yes/no results. The new product line aims to cover sports, elections, entertainment and economic indicators, leveraging Fanatics’ audience and Crypto.com’s trading infrastructure.
The regulatory landscape in the United States remains complex. The Commodity Futures Trading Commission (CFTC) frequently classifies these instruments as financial products, while individual states impose their own restrictions. A recent Nevada court order forced Crypto.com to halt sports markets in the state, and the company is currently appealing the ruling. Meanwhile, industry tensions persist, as DraftKings and FanDuel have distanced themselves from the AGA, though Fanatics remains an active member.
“If there is a business that matters to our customers, we want to be there and do it better,” said Michael Rubin, CEO of Fanatics — a statement that reflects Fanatics’ intention to aggressively expand into high-demand markets.
The sector has recorded US$27.9 billion in cumulative trading volume between January and October 2025, a magnitude that explains the entrance of major operators. Fanatics will compete against established platforms such as DraftKings, FanDuel, Kalshi, Polymarket, Underdog, Robinhood and PrizePicks, while some incumbents like BetMGM and Caesars remain cautious amid regulatory uncertainties.
For traders and crypto treasuries, the move offers both opportunity and risk. NFA registration reduces one layer of uncertainty, but state-level bans and litigation remain material threats. Operationally, a future shift toward FCM status could streamline custody, improve execution and reduce counterparty friction, strengthening Fanatics’ competitive position.
The alliance positions Fanatics to merge sports fandom, prediction markets and crypto infrastructure, fueling competition in a rapidly expanding segment—but still under the shadow of legal and regulatory constraints that may limit its reach by state.