Fanatics, the sports merchandise and trading card giant, has acquired a regulated exchange to launch its own prediction markets business. The deal marks a significant expansion for the company, which has been steadily moving into sports betting and now aims to offer event-based wagering through a licensed platform.
From Jerseys to Odds
Fanatics is best known for selling officially licensed sports apparel and collectibles. In recent years, it has pushed into sports betting, acquiring PointsBet's U.S. operations and launching its own Fanatics Sportsbook. Now, with the purchase of a regulated exchange, the company is positioning itself to offer prediction markets — contracts that allow users to bet on outcomes ranging from election results to sports scores.
The acquired exchange is already licensed in a jurisdiction that permits such trading, giving Fanatics a ready-made regulatory framework. The company did not disclose the name of the exchange or the financial terms of the deal.
Why a Regulated Exchange Matters
Prediction markets operate in a legal gray area in many parts of the U.S., but a regulated exchange provides a clear path to compliance. By buying an existing licensed platform, Fanatics avoids the lengthy and uncertain process of applying for a new license. The exchange's existing user base and technology also give the company a head start.
Regulated exchanges typically require operators to follow strict rules on market manipulation, customer protection, and reporting. That structure could help Fanatics attract mainstream users who might be wary of unregulated platforms.
The Growing Appeal of Event-Based Betting
Prediction markets have gained traction in recent years, with platforms like PredictIt and Kalshi offering contracts on political, economic, and cultural events. The sector has drawn interest from both retail traders and institutional investors looking for alternative assets.
Fanatics' entry into the space signals that the company sees prediction markets as a natural extension of its sports-focused brand. The company already has a large customer base of sports fans who are familiar with betting on games. Offering contracts on non-sports events could broaden that appeal.
The acquisition also comes as regulators in the U.S. and abroad are paying closer attention to prediction markets. The Commodity Futures Trading Commission has taken enforcement actions against some unregistered platforms, while others have sought formal approval. Fanatics' move to buy a regulated exchange suggests it wants to operate within the law from the start.
The company has not announced a launch date for its prediction market products. The deal is expected to close in the coming months, pending standard regulatory reviews.
