Michael Rubin wants Fanatics to be No. 1 in betting. Tuesday’s results in Nebraska and Congress made that climb steeper | Fortune

Fanatics’ expansion in sports betting and prediction markets hit dual obstacles Tuesday as Nebraska voters rejected a ballot measure to legalize online sports betting and Democrats won projected control of both chambers of Congress. The Nebraska initiative failed 54.5% to 45.5%, despite support from Fanatics, BetMGM, DraftKings and FanDuel, which together spent nearly $22 million on the campaign; Covers estimates mobile betting may not launch in the state before 2029. Nationally, Democratic wins put Sen. Elizabeth Warren, a critic of election-related event contracts, in line to lead the Senate Banking Committee, raising regulatory risk for Fanatics Markets, the prediction platform Fanatics launched in December 2025 to compete with Kalshi and Polymarket. The results complicate CEO Michael Rubin’s stated goal of making Fanatics No. 1 in betting, a business where he has acknowledged the company is a “distant No. 3.” Investors should watch how Fanatics Markets navigates congressional scrutiny of event contracts and whether the company pursues new state-level ballot fights after the Nebraska loss.