**Fanatics Explores Entry into Predictions Market in Partnership with Crypto.com**
Fanatics, the sports merchandising and collectibles giant, is reportedly considering entering the predictions market through a potential collaboration with Crypto.com. According to a Financial Times report, the plans for this partnership are still in the early stages and could evolve as discussions continue, based on information from unnamed sources.
### Fanatics’ Shift in Focus
Fanatics is primarily known as a sports-focused retail and technology company, with significant operations in collectibles such as trading cards. The company has attracted over $700 million in funding from leading investors including SoftBank, Silver Lake, Fidelity, and Clearlake Capital. As of December 2022, Fanatics was valued at $31 billion.
Prediction markets have recently emerged as a promising niche in the United States, with sports betting drawing considerable interest from both investors and bettors. Currently, the sector is dominated by a few major players like Kalshi and Polymarket, which have experienced rapid growth and increasing institutional attention.
### New Entrants and Crypto.com’s Role
In the past few months, several new entrants have entered the space aiming to capitalize on the momentum and establish early positions in the sector. Crypto.com, a global cryptocurrency exchange, has recently ventured into offering regulated event contracts. The platform has also provided infrastructure support to consumer-facing platforms such as Underdog and Hollywood.com, helping them launch dedicated prediction markets.
At the time of reporting, neither Fanatics nor Crypto.com had confirmed the development. However, significant regulatory changes have occurred since earlier comments were made this year, influencing the market landscape.
### Regulatory Clarity Spurs Prediction Market Growth
A key factor fueling the boom in prediction markets is evolving regulatory clarity. The Commodity Futures Trading Commission (CFTC), which fined Polymarket in 2022 and effectively pushed it out of the U.S. due to unregistered contracts, has recently shifted its stance under the current administration.
In September, the CFTC issued a no-action letter approving Polymarket’s acquisition of QCX. This move effectively allows Polymarket to resume operations in the United States and signals a regulatory environment now more favorable to federally supervised prediction markets.
Meanwhile, Kalshi, which has faced multiple legal challenges across various U.S. states regarding the classification of its contracts as either gambling or derivatives, has secured several courtroom victories. These rulings have reinforced Kalshi’s federal regulatory standing.
### Big Brands Making Big Bets
With the regulatory environment becoming clearer, major brands are increasingly investing in the predictions market. For example, Polymarket has recently secured high-profile partnerships, including one with the UFC to integrate prediction features into live broadcasts. Additionally, Yahoo Finance now displays Polymarket odds across its platform, broadening reach and engagement.
As the predictions market continues to gain traction, collaborations like that between Fanatics and Crypto.com could play a significant role in shaping the sector’s future.
https://crypto.news/fanatics-mulls-predictions-market-entry-in-partnership-with-crypto-com/