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Read Full BioFanatics CEO Michael Rubin confirmed that the company will launch prediction markets in the coming weeks, expressing disbelief that sports betting and gaming loopholes have not been closed by regulators.
In an interview with CNBC, Rubin stated that the company is launching a platform in collaboration with Crypto.com. He wants to take the opportunity to expand Fanatics from its current 23 states into the remaining 27.
The lack of clear regulation has created this opportunity, and for the time being, the company is happy to operate in the legal gray area. He stated, “If the regulatory environment says we can do this, then we’re gonna do it. And if it changes, then we’ll change with it.”
The regulatory environment has not explicitly approved the use of prediction markets. The Commodity Futures Trading Commission (CFTC) has allowed expansion of sports markets through self-certification processes, but has not taken a firm stance on the markets. While many states have raised legal challenges, there has been no definitive ruling on their status.
Rubin expressed disbelief that DFS, prediction markets, and sweepstakes casinos have been able to survive despite not being officially legalized. He added, “I would not have believed that a year ago, all these fantasy players, prediction markets, sweepstake casinos…I didn’t think any of these things would still be going, but I was wrong.”
The company plans to capitalize on the lack of clear oversight. He said, “So, what do we do? We adapt, we build, and we’re launching our predictions business in the next couple of weeks, and we’re excited about it.”
Sportsbooks in Position to Beat Kalshi & Polymarket
Rubin is also confident that Fanatics, along with other leading sportsbooks, such as FanDuel and DraftKings, are well-positioned to win the battle for users against established prediction market platforms like Kalshi and Polymarket.
“I think the winners of this are going to be the sportsbooks,” he said, adding, “We have such strategic advantages from the enormous customer base that we have to all of the experience.”
While Polymarket’s CEO Shayne Coplan poured scorn on the sportsbooks this week, Rubin was more diplomatic. He described Coplan as a “stud” along with Kalshi CEO Tarek Mansour, but at the same time said he expects the sportsbooks to come out on top in the long run.
Happy to Operate With Regulatory Risk
Prediction markets are facing increased legal scrutiny. New York became the eighth state to send a cease-and-desist letter to Kalshi last month. Several states have also taken similar action with Fanatics’ partner, Crypto.com. In response, the company withdrew operations from Nevada.
FanDuel and DraftKings also withdrew sports betting licenses from Nevada in preparation for launching their prediction market platforms. Nevada is one of seven states that have warned companies about offering sports event contracts, the latest being Maryland this week.
Fanatics currently operates in 23 states, including several that are involved in legal battles opposing Kalshi and other operators. That includes Maryland, New York, New Jersey, Arizona, Ohio, Illinois, and Massachusetts.
Whether the company is willing to give up its sports betting licenses in favor of prediction markets is not yet clear. Rubin said he cannot predict what the future regulatory environment will look like, but for now, the opportunity to launch in some of the country’s biggest states, such as California, Texas, and Florida, is too tempting to resist.
