Fanatics explores launch of prediction market with Crypto.com
Sports merchandising firm is looking to jump into prediction markets in the midst of a global expansion
Sports merchandising group Fanatics is in talks to partner with Crypto.com on a push into the fast-growing prediction markets sector in which customers bet on sports, politics and pop culture.
The move would give US-based Fanatics exposure to a sector whose popularity has exploded in the past year with firms such as Polymarket and Kalshi growing rapidly and commanding high valuations.
The plans for a prediction market partnership between Fanatics and Singapore-based Crypto.com are in early stages and could still change, according to people familiar with the matter.
Fanatics and Crypto.com declined to comment.
Fanatics, which opened a flagship London store on Regent Street in April, is in the midst of a global expansion, making a recent foray into sports betting alongside a push to grow its collectibles business, which sells trading cards.
The talks with Crypto.com come as the emergence of prediction markets has forced existing gambling companies to assess and modify their business plans in the regulated US market.
Flutter, the parent company of sports betting platform FanDuel, announced on Wednesday that it is partnering with derivatives exchange CME Group to launch a prediction markets platform.
Crypto.com has partnered with a number of online businesses to offer event contracts — instruments used in prediction markets and which pay out when a specific event occurs — through its regulated exchange and clearing house. It recently announced partnerships with Hollywood.com, an entertainment website, and MyPrize, a social gaming platform.
Led by Michael Rubin, Fanatics has raised money from prominent investors including Clearlake Capital, Silver Lake, Fidelity and SoftBank. It raised about $700mn at a $31bn valuation in December 2022.
Fanatics has been acquisitive in recent years, striking deals for the Topps trading cards business and for premium and vintage sports apparel company Mitchell & Ness.
The group is a partner to sports leagues including the US National Football League, National Hockey League and Major League Baseball, which are all shareholders in Fanatics.
Betting and gaming is a priority for Rubin, who has become a billionaire by building a sports business that spans selling trading cards and sports merchandise online, as well as events and gambling.
Fanatics has multiplied in size since a 2011 deal in which Rubin’s online retail business GSI Commerce bought the Florida-based sports retailer. Rubin sold GSI to eBay later that year for $2.4bn, but kept the sports business and branding rights.