Prediction markets companies, such as Kalshi and Polymarket, have been criticized for a long time by various regulators, jurisdictions, and non-profit organizations alike. However, it seems that even other companies are after the prediction markets giants, as Anthony D’Angelo, head of responsible gaming at Fanatics Betting and Gaming, criticized the seeming lack of regulation of these platforms.
D’Angelo Criticizes Kalshi and Polymarket
Speaking at a panel at the National Conference of State Legislatures Legislative Summit in Chicago, Illinois, D’Angelo questioned the difference between unlicensed sportsbooks and prediction markets. He likened pushing people in states that don’t have sports betting to using prediction markets to making them use unlicensed overseas sportsbooks. D’Angelo specifically pointed to Polymarket and Kalshi, contending that neither platform provides the same level of responsible gambling oversight as licensed sports betting operators.
At the panel, D’Angelo spoke alongside David Sasaki, director at the American Institute for Boys and Men, and Dr Rachel Volberg, a research professor at the University of Massachusetts Amherst. Focusing on the impact of gambling on young men, Sasaki cited figures highlighting the prevalence of online sports betting within the demographic.
He noted that around one in four Americans currently have, or have previously had, an online sports betting account, but said surveys suggest the figure rises to nearly 50% among men aged 18 to 49. Sasaki argued that sports betting has become particularly widespread among young men and has grown at an exceptionally rapid pace. His words seem all the more compelling when taking into account a recent study that suggests betting has become America’s biggest pastime by the amount spent on it.
Sasaki said the need for broad, scalable harm prevention policies is becoming increasingly urgent, adding that the challenge has intensified with the emergence of prediction markets.
Fanatics Also Offers Prediction Markets Products, so What’s the Difference?
While Fanatics also have their own prediction market products, D’Angelo argued that the company is under much more scrutiny compared to the likes of Kalshi and Polymarket. He also said that Fanatics does not offer said products in states where sports betting is illegal.
A clear distinction has emerged between operators that launched as prediction market platforms and those that have incorporated prediction markets into existing sports betting offerings. Fanatics has been steadily developing its offerings over time. For example, a couple of months ago, the company added combos to its prediction markets offerings.
There’s been a clear divide in the industry’s competing trade associations. The Sports Betting Alliance (SBA) represents DraftKings, FanDuel, Fanatics, and BetMGM, while the Coalition for Prediction Markets (CPM) has Kalshi, Crypto.com, Coinbase, Robinhood, and Underdog among its members. However, two notable exceptions stand out as BetMGM belongs to the SBA despite not offering a prediction market product, while Underdog is a member of the CPM even though it began as a fantasy sports platform.
Despite these differences, D’Angelo explained that the industry should aim to build a sustainable, long-term model that protects customers. He emphasized that collaboration between operators, regulators, advocacy groups, and researchers is essential to achieving that goal.
In other news about Fanatics, the company recently launched a new program to curb betting abuse.