Fanatics Suit Over Exec Exit Reveals Kalshi Investments

A legal clash between merchandising and betting giant Fanatics and prediction-market platform Polymarket has ended quietly in settlement, but court filings tied to the dispute have exposed new details about competition and strategy in the changing sports-prediction sector.

Fanatics Challenge to Polymarket Hire Ends in Settlement

The conflict centered on former Fanatics executive Ari Borod, who departed the company at the start of the year to take a senior role leading sports partnerships at Polymarket. after his move, Fanatics sought a court order in Florida to block the transition, arguing that Borod was restricted by contractual obligations and had access to sensitive internal information.

Borod countered that his contract did not contain a post-employment non-compete clause and that his new employer did not compete with Fanatics’ core operations. He also maintained that he had informed the company of his planned departure in advance and offered to help ensure a smooth handover. Despite the dispute, both sides informed the court in early February that they had resolved the matter.

Although the lawsuit is now settled, documents filed during the case raised questions about Fanatics’ own position in prediction markets. In his submission, Borod stated that he believed founder Michael Rubin and Fanatics Betting and Gaming chief Matt King had made personal investments in rival exchange Kalshi before Fanatics launched its own prediction-based product late last year.

Fanatics and Polymarket Clash Reflects Fight for Sports Fans

The filings also suggested that Fanatics leadership had explored acquiring a designated contract market to operate its own exchange infrastructure rather than relying on third-party platforms. Borod indicated he had limited awareness of those discussions and did not know the details of any potential transaction.

Another aspect of the dispute involved allegations that Borod had attempted to cultivate relationships between Polymarket and major sports organizations such as the NBA and MLB. He argued that he joined conversations that were already underway rather than initiating them himself.

The episode mirrors an earlier industry legal fight in which Fanatics benefited from hiring an executive away from DraftKings, highlighting how talent moves in the sports-gaming sector spark litigation.

For Polymarket, bringing in Borod signals a push to deepen ties with sports organizations and broaden mainstream adoption of prediction markets. For Fanatics, the dispute underscores its ambition to expand beyond merchandise and sportsbooks into financial-style event trading.

While the settlement closes the immediate case, the disclosures hint at growing competition as sportsbooks, exchanges, and prediction platforms converge around the same audience of sports fans and bettors.