Fanatics starts sports prediction app, not subject to state taxes, in 24 states

By Jon Styf
The Center Square

Americans can now wager on sports results through Fanatics Predicts in 24 states that have not allowed legal sports wagering including California, Texas, Georgia, Washington and more.

National sportsbooks including FanDuel, DraftKings and Fanatics announced earlier this year that they would join prediction markets such as Kalshi in what they call sports event contracts where users wager against each other on the results of everything from sports markets to elections.

One major difference for states is that they do not receive taxes for prediction market wagers or revenue and instead it is regulated federally through the Commodity Futures Trading Commission.

Fanatics beat the rush of the national brands into the markets with FanDuel and DraftKings expected to open markets in 2026.

“For years, Fanatics has given fans new ways to enhance their fandom through team merchandise, collectibles, tickets, gaming, events and more,” said Matt King, Chief Executive Officer, Fanatics Betting and Gaming. “Now, with Fanatics Markets, we’re giving fans a safe, and intuitive way to engage with the moments that move sports and culture, and to pick a side and profit along the way if their prediction is correct.”

Kalshi and its prediction markets have been the subject of lawsuits and cease-and-desist letters from state sports wagering oversight boards across the country including a large-scale class action lawsuit during the week of Thanksgiving claiming the company is operating unlicensed sports betting and the company wasn’t clear who they were betting against.

Fanatics said it is live in 24 states as of Wednesday including Alaska, Delaware, Hawaii, Idaho, Maine, New Hampshire, North Dakota, Rhode Island, South Dakota, Utah, Alabama, California, Florida, Georgia, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, South Carolina, Texas and Washington.

Fanatics launched with offering in sports, finance, economics and politics and said that early in 2026 it will add crypto, stocks/IPOs, climate, pop culture, tech/AI, movies and music.

A Wisconsin lawmaker recently warned colleagues that prediction markets could take over the state’s wagering if it didn’t act swiftly to allow for legalized wagering through the state’s 11 tribes.

“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,” wrote Wisconsin Rep. Tyler August, R-Walworth.