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FanDuel is watching the digital card-ripping market while competitors build out their offerings, according to Sportico.com. The operator is sending frequent sportsbook bettors free credits for Arena Club, an unaffiliated card-ripping app.
Flutter Entertainment CEO Dan Taylor described FanDuel as “tracking” the category, Sportico.com reported, citing his comments to Barron’s. FanDuel is not actively launching its own rips vertical.
Fanatics, Underdog and PrizePicks already offer digital card rips nationwide, according to the report. DraftKings has exposure through its venture arm, Drive, which invested in Rips by Triumph.
How Digital Card Rips Work
Customers pay upfront for a randomly selected digital trading card from a curated collection. Each digital card is backed by a physical card that customers can request for delivery.
Users typically accept instant sell-now offers, often using the proceeds to open more packs. Some apps also let customers keep cards in a digital vault indefinitely.
Sportico.com cited Barron’s reporting that instant sell rates reach 98% on some apps. The outlet described average pack values as typically 5% to 15% below the entry fee.
Those mechanics have drawn comparisons with gambling. Sportico.com quoted Davis Catlin describing rips as “effectively a slot machine without gambling taxes.” That is an industry assessment, rather than a legal determination.
FanDuel Weighs Regulatory Exposure
Sportico.com describes U.S. card-ripping products as currently treated like e-commerce, without dedicated industry regulators or an official responsible-gaming standard. The outlet reported that no state had challenged whether rips constitute gambling.
FanDuel has taken a more cautious approach to regulatory gray areas than some peers. Its concerns include backlash from states and tribal groups where online sports betting remains unauthorized, according to Sportico.com.
The operator has already expanded into another adjacent category: prediction markets. Its joint-venture app with CME Group launched in December 2025. Sportico.com reported that FanDuel accounted for less than 1% of U.S. prediction-market volume during the current NFL season.
Taylor wrote in a letter to shareholders that Flutter must “move faster.”
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Source: As reported by Sportico.com.
