Fanatics CEO Michael Rubin has announced the imminent launch of prediction markets by his company, showing surprise over the untouched loopholes in sports betting and gaming by regulatory bodies.
In a recent CNBC interview, Rubin revealed the development of a new platform in collaboration with Crypto.com, aiming to extend Fanatics’ reach from 23 to all 50 states.
Rubin highlighted the exploitable gaps in regulations that have allowed them to pursue this venture. He emphasized, “If it’s permissible by the regulators, we’re pushing forward. Should the regulations evolve, we will adapt accordingly.”
Despite the Commodity Futures Trading Commission (CFTC) allowing expansion via self-certification, there’s still ambiguity around the acceptance of prediction markets. States have varied in their legal stance, yet no conclusive decisions have been made.
Rubin expressed his astonishment at the persistence of DFS, prediction markets, and sweepstakes casinos which continue to operate without formal legalization. He noted, “Just a year ago, I wouldn’t have thought these markets could last, but they have.”
The company is embracing the current regulatory uncertainty.” So, we’re going to adjust, we’re creating, and we’re eager about rolling out our prediction markets shortly,” Rubin stated.
Sportsbooks Poised to Outperform Kalshi & Polymarket
According to Rubin, Fanatics, alongside other leading sportsbooks such as FanDuel and DraftKings, is set to prevail over well-known prediction market platforms like Kalshi and Polymarket.
“The sportsbooks are likely to be the major victors here,” he added, citing the vast customer base and extensive experience as key advantages.
While Polymarket’s CEO Shayne Coplan criticized the sportsbooks recently, Rubin remained measured in his response. He acknowledged the prowess of Coplan and Kalshi CEO Tarek Mansour, yet stressed his confidence in the sportsbooks’ long-term success.
Navigating the Risky Regulatory Landscape
The spotlight on prediction markets has intensified legal pressures. New York, notably becoming the eighth state to issue a cease-and-desist to Kalshi last month. Actions against Crypto.com have similarly prompted a strategic withdrawal from Nevada by the company.
Both FanDuel and DraftKings have relinquished their sports betting licenses in Nevada to pave the way for their own prediction market platforms, with Nevada among several states cautioning about sports event contracts, the most recent being Maryland.
Fanatics currently engages 23 states, including those entangled in legal disputes with Kalshi and other entities, like Maryland, New York, New Jersey, Arizona, Ohio, Illinois, and Massachusetts.
It’s not immediately clear whether the shift towards prediction markets will involve a full pivot from sports betting licenses. However, Rubin remains optimistic about leveraging opportunities in major states such as California, Texas, and Florida despite regulatory uncertainty.
The post Fanatics CEO Can’t Believe Gambling Regulation So Lax, Company Launches Prediction Markets originally appeared on CasinoBeats.
Fanatics CEO Michael Rubin confirmed the near-term launch of prediction markets by his company, dismayed by the unchecked exposures in sports betting and gaming regulations. In his CNBC dialogue, Rubin mentioned the partnership with Crypto.com aimed at expanding the company’s horizons.
The post Fanatics CEO Can’t Believe Gambling Regulation So Lax, Company Launches Prediction Markets appeared first on CasinoBeats.