Fanatics โLaunchesโ Sports Prediction Platform,โ Circumventing State Sports Bettingโค Taxes
WASHINGTON – Fanatics has entered the sports โwagering arena โขwith theโ launch of its “Fanatics Predicts” platform,โ nowโ available in 24 states where traditional sports betting remains illegal. Unlike conventional sportsbooks, the platform operates as a prediction market, placing it under federal regulation and exempting it from state taxes on wagers andโฃ revenue.
The move comes as national sportsbooks like FanDuel and DraftKings prepare to enter similar prediction markets – knownโ as sports event contracts – in 2026. These markets allow users to wager against each other on the outcomes of sporting events, โฃelections, and other occurrences.
Currently, Fanatics Predicts is live in states including California,โค Texas, Georgia, Washington, Florida, and โคAlaska, offering wagers on sports, finance, economics, and โpolitics. The โขcompany plans to expand offerings inโ early 2026 โto include crypto, stocks/IPOs, โฃclimate, pop culture, tech/AI,โ movies, and music.
“For years, Fanatics has given fans new ways โto enhance their fandomโฃ through team merchandise, collectibles, tickets, โgaming, events and more,” said โขMatt King, Chief Executive Officer, Fanatics โฃBetting and Gaming.โ “Now, โคwith โFanatics Markets, we’re giving fans a safe, and intuitive way to engage with the moments that move sports โขand culture, and to pick a side and profit along the way if their โprediction is correct.”
Theโ rise of prediction markets hasn’t been without controversy. โKalshi, a similar platform, has faced lawsuits and cease-and-desist letters from state sports wagering oversight boards alleging โunlicensed sports betting. A class โคaction lawsuit wasโค filed against Kalshi the week ofโ thanksgiving, claiming a lack of transparency regarding who users were wagering against.
The emergence of these federally โregulated platforms is prompting concern among state lawmakers. Wisconsin Representative Tyler August recently cautioned colleagues that โprediction markets โขcould dominate state wagering if Wisconsinโ doesn’t swiftly legalize sports betting through its 11 tribes. โ
“If we leave a gray area in state law, national prediction platforms will fill it without our compact framework, wisconsin oversight, or Wisconsin consumer safeguards,”โค August wrote.
Prediction markets are regulatedโ by the Commodity Futures Trading Commission, a โขkey distinction from traditional sports betting which falls under state jurisdiction and โis subject to state taxes.
