Fanatics Betting and Gaming’s head of responsible gaming, Anthony D’Angelo, voiced stern criticism of sports prediction markets this week. Speaking at the National Conference of State Legislatures Legislative Summit in Chicago, D’Angelo argued these markets don’t meet the responsible gambling criteria demanded of state-licensed sportsbooks. He likened them to offshore betting platforms, particularly in states where sports betting isn’t legalized. Next.io was the first to report his comments. D’Angelo noted, “When I say underground, I mean offshore – the unlicensed, unregulated sportsbooks overseas,” drawing a parallel between these prediction markets and illegal sports betting avenues.
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Fanatics Expands in Prediction Markets
Just days after these comments, Fanatics announced its acquisition of Water Street Labs and CX Clearinghouse from BGC Group. This move allows Fanatics Markets to independently list and clear its own prediction market contracts. It’s a strategic step in a fiercely competitive arena within the gaming industry. Notably, Fanatics only offers these products where online sports betting isn’t legal, a differentiation D’Angelo underscored. He compared Fanatics’ practices to those of Kalshi and Polymarket, whose operations were curtailed by court rulings in states like Michigan and Nevada.
Consumer Protection Concerns Heightened
Prediction markets are gaining attention in responsible gambling discussions, given their increasing resemblance to traditional sports wagering. And despite criticizing these markets, D’Angelo called for industry-wide cooperation on promoting responsible gambling. And “We all want the same thing on this panel,” he said. “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.”
Regulation and Industry Dynamics
The ongoing debate reflects a broader industry challenge: balancing innovation with consumer safeguards. Regulators in states like Michigan and Nevada have set precedents for limiting prediction market operations, signaling tighter controls may loom. Still, the market is complex. Fanatics’ move into prediction markets illustrates this intricacy — a push for growth within a framework lacking uniform regulation. Regulatory bodies remain cautious. It’s uncertain whether prediction markets will align with standards set for traditional sportsbooks. Industry insiders know this isn’t Fanatics’ first venture into complex markets without clear regulatory pathways. The board is expected to discuss further regulatory measures during upcoming sessions.
Marcus Chen brings a quantitative approach to poker strategy and sports betting analysis. With a background in data analytics and over eight years covering professional poker circuits, his articles combine statistical insights with practical advice for serious players looking to sharpen their edge at the table.
