Fanatics is moving decisively into prediction markets through a new strategic alliance with Crypto.com, with the first rollout scheduled for the weeks following its November 2025 announcement under the brand “Fanatics Markets IB.” The move blends a regulatory acquisition —a stake in Paragon Global Markets, an NFA-licensed entity— with the technological backbone of a CFTC-registered provider. Together, they aim to fast-track the commercialization of large-scale event contracts.
A strategic entry into a crowded market
Fanatics intends to lean on its massive customer base and years of experience in betting operations to secure a foothold in a fiercely competitive segment. Michael Rubin has highlighted the imminent launch of contracts under the new brand, using the Paragon stake as a regulatory shortcut to avoid slower approval timelines.
Crypto.com enters as both the technology partner and operational counterparty. As a CFTC-registered exchange and clearinghouse, it already supports similar products across platforms tied to social media, entertainment and financial prediction. Its CEO has framed prediction markets as a major growth opportunity, potentially evolving into a multibillion-dollar industry. Through this partnership, Fanatics plugs directly into an expanding ecosystem where robust infrastructure enables smooth execution and settlement of contracts.
However, the path forward is anything but simple. Between January and October 2025, trading volume in the category surpassed $27.9 billion, underscoring the financial stakes and the fierce rivalry among operators such as FanDuel, DraftKings, Underdog, PrizePicks, Kalshi and Polymarket.
Rubin argues that the biggest advantage lies with established industry giants: “I think the winners in this will be the sportsbooks,” pointing to their reach and user acquisition capabilities.
Yet substantial legal hurdles remain. State regulators have issued compliance warnings —including in Maryland— and a federal judge imposed a stay against Crypto.com’s sports markets in Nevada, showing that litigation and regulatory pushback can quickly halt regional expansion.
Concerns about integrity in sports also add pressure. Some professional leagues, including the NBA, have warned regulators that allowing contracts tied to sensitive variables —like player injuries or referee calls— could threaten fairness. While some operators have distanced themselves from industry associations amid policy disagreements, Fanatics has maintained active membership, likely to preserve a seat at the table in future rulemaking.
Fanatics’ entry into prediction markets, powered by Crypto.com’s infrastructure and a calculated regulatory strategy, signals a step toward further professionalization of the sector. Still, the rollout —expected to begin weeks after the November 2025 announcement— will be shaped by upcoming judicial and regulatory decisions that determine where Fanatics can operate and what types of event contracts it will be allowed to offer.
