Fanatics Betting and Gaming’s head of responsible gaming criticized sports prediction markets this week, arguing they lack the responsible gambling safeguards required of state-licensed sportsbooks, even as Fanatics expands its own prediction market offerings.
Speaking during a panel on sports betting addiction at the National Conference of State Legislatures Legislative Summit in Chicago, Anthony D’Angelo argued prediction markets lack the consumer protections required of licensed sportsbooks, like Fanatics, and compared them to offshore betting sites in states without legal sports betting. The comments were first reported by Next.io.
“When I say underground, I mean offshore – the unlicensed, unregulated sportsbooks overseas,” D’Angelo said. “But in states that don’t have sports betting, I would say pushing people towards markets products is the same.”
He later added: “The [prediction] markets products that don’t have the controls that Fanatics, FanDuel and DraftKings have are illegal sports betting markets.”
Fanatics doubles down on prediction markets
The remarks came just days after Fanatics announced it had agreed to acquire Water Street Labs and CX Clearinghouse from BGC Group.
The acquisition allows Fanatics Markets to list and clear its own prediction market contracts rather than relying on third-party infrastructure, marking the latest investment in a business that has become one of the gaming industry’s fastest-growing competitive battlegrounds.
Fanatics only offers prediction market products in states where online sports betting is not legal, a distinction D’Angelo emphasized during the discussion. He drew a distinction between Fanatics’ offering and companies such as Kalshi and Polymarket, which had operated nationally before court rulings limited their sports event contracts in states like Michigan and Nevada.
His comments nevertheless underscore the increasingly complex position facing sportsbook operators that have entered the federally regulated prediction market business while arguing those products should be subject to many of the same responsible gambling standards as state-licensed sportsbooks.
Consumer protection debate
Prediction markets have become an increasingly prominent topic in responsible gambling discussions as federally regulated exchanges expand sports event contracts that resemble traditional sports wagers.
Despite his criticism, D’Angelo called for greater cooperation across the industry on responsible gambling.
“We all want the same thing on this panel. I think we want a sustainable, long-term industry where customers are protected. But I think we also need to understand that the collaboration between the operators, between the regulators, between advocacy groups and between researchers is super important.”
