Fanatics Launches Prediction Markets and Criticizes Weak Industry Regulation

Fanatics, one of the fastest-growing brands in the U.S. digital betting sector, has announced the launch of its own prediction-market platform, positioning it as a modern alternative to traditional sportsbook models. The move marks a significant step in the company’s expansion strategy, as prediction markets are rapidly gaining traction among younger, data-driven audiences. During the announcement, the company’s CEO openly criticized the current state of gambling regulation in the United States, calling it fragmented, inconsistent, and full of loopholes that operators continue to exploit. According to him, the regulatory framework has not kept pace with innovation, allowing gray-area platforms and offshore providers to gain market share while licensed operators face strict and unevenly applied rules. He also pointed out that prediction markets—despite operating similarly to financial contracts—are often regulated far less strictly than traditional sports betting platforms. This, he argued, creates an unfair competitive landscape and can lead to consumer-protection issues. Fanatics emphasized that clear, modern regulation is essential to avoid misuse, ensure fairness, and support legitimate innovation. Alongside criticizing the regulatory ecosystem, Fanatics confirmed plans to expand its prediction-market offering into additional U.S. states, pending approval from local authorities. The company sees prediction markets as a powerful tool for user engagement, offering more transparent pricing models and a trading-style experience that differs from conventional sportsbooks. Industry analysts are divided: some view Fanatics’ move as a bold challenge to outdated rules, while others believe the company is attempting to accelerate regulation in a direction that favors its business model. In either case, the launch signals a growing shift as gambling and financial-market technologies continue to overlap.