Fanatics Launches Prediction Markets in 24 States Amidst Regulatory Scrutiny and CFTC Nomination

Fanatics has officially launched its prediction market platform, Fanatics Markets, initially going live in 10 U.S. states with plans to expand to 24 states by the end of the week. The new platform allows users to trade on outcomes across sports, finance, economics, and politics, with future expansion into crypto, IPOs, and cultural events planned for early 2026. This move positions Fanatics as a direct competitor to existing players like Kalshi and Polymarket in the rapidly growing prediction market sector.

The launch comes as the regulatory landscape for prediction markets faces increased scrutiny. Connecticut's Department of Consumer Protection has accused several platforms, including Robinhood, Kalshi, and PredictIt, of operating unlicensed sports betting. This action highlights the ongoing debate and regulatory challenges surrounding the classification of prediction markets, which are federally regulated by the Commodity Futures Trading Commission (CFTC) as event contracts, distinct from traditional sports betting.

Fanatics Markets operates under the regulatory framework of the CFTC, having acquired Paragon Global Markets in July 2025 to secure the necessary clearance. The company has partnered with Crypto.com for its institutional-grade trading infrastructure and pricing. Matt King, CEO of Fanatics Betting and Gaming, stated that the platform offers "a safe and intuitive way to engage with the moments that move sports and culture," emphasizing its distinction from gambling.

In a related development, the U.S. Senate has advanced key nominations, including Mike Selig for CFTC Chairman. Selig's potential leadership at the CFTC could significantly influence the future regulatory environment for prediction markets. His confirmation would be crucial as the agency navigates the complexities of overseeing these evolving financial products, especially in light of state-level regulatory challenges. Fanatics' entry into this space ahead of rivals like DraftKings and FanDuel underscores the increasing interest and investment in prediction markets.