Fanatics Launches New Prediction Market: Don't Say 'Gambling'

Fanatics becomes the latest US regulated sportsbook that plans to launch its own prediction market in the mode of Kalshi. 

From Sportico:

“I mean, I look at these as trades, right?” Matt King, CEO of Fanatics Betting & Gaming, said in an interview. “If you think about the regulatory context that you sit under with the futures, I think ‘trade’ is the proper vernacular, and so that’s kind of how we refer to it.”

So not gambling?

“I view this as trading,” King said.

The Core Difference: Sportsbooks vs. Prediction Markets 

Sportsbook

• The house sets the odds (oddsmakers/bookmakers).
• Odds move based on betting volume, liability, and information.
• The sportsbook always bakes in a house edge (vig/juice).

Prediction Market

• Users set the prices, not a bookmaker.
• Prices move based on supply/demand of “shares.”
• No traditional vig; the platform charges small trading fees instead.

Future Uncertainties 

A number of US states - mostly those that currently regulate sports betting - have expressed disapproval of the prediction market model.  Some like Nevada and New Jersey have even taken on Kalshi in the courts.  

A few of the states voicing concerns over prediction markets just happen to license Fanatics as well. 

To get around this dilemma, Fanatics plans to operate in 24 states where it does not currently operate a sportsbook. Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota and Utah are among the states where the Fanatics prediction market is expected to launch. 

• Gilbert Horowitz, Gambling911.com