Fanatics strikes deal to offer official World Cup prediction markets in U.S.

Fanatics Markets has landed U.S. rights to offer the official prediction markets of the World Cup, combining with global FIFA rights-holder ADI PredictStreet on a co-branded digital hub that will include tournament news, stats and other in-app content.

Owned by the Abu Dhabi royal family, ADI PredictStreet signed on as FIFA’s official prediction market platform in April but was unable to offer its recently launched exchange in the U.S., where event contracts are regulated federally by the Commodity Futures Trading Commission. Fanatics Markets trades on Crypto.com’s CFTC-regulated exchange.

Fanatics offers the popular sports betting workaround in states that have not legalized online sports betting, including California, Texas and Georgia, as well as in Florida, where Hard Rock Bet operates exclusively.

It was named the the World Cup’s official in-stadium retail licensee in December.

“You have a global partner of FIFA who, in a very quickly evolving and dynamic space that is prediction markets, was in a position where they did need a U.S. partner to deliver the best experience for sports fans in the U.S.,” said Matt King, CEO of Fanatics’ sports betting subsidiary. “We … can move very quickly and always want to be in a position where we’re delivering great experiences for sports fans. And we’re big believers in working with officially licensed partners. So for us it was a natural fit.”

The deal also gives Fanatics rights to use World Cup logos and images in its advertising and on social media, where it figures to do most of its promotion. It does not expect to run spots during game broadcasts or shoulder programming, King said.

“What we’re going to witness this summer all the way through football season is an advertising avalanche like we have not seen in a very long time,” King said. “We’re in this for the long game. You’re not going to see us trying to go toe-to-toe with people that are going to spend what we would think are uneconomic dollars on advertising.”

DraftKings has said it expects to spend $200M to $300M promoting its predictions offering this year, with its first push beginning with the World Cup.