Digital Pack Rips Hit $2 Billion Annualized Revenue With Sportsbook Operators Already Active
Digital pack rips have grown from 50,000 to 1.7 million weekly users with $2B in annualized revenue. Sportsbook and prediction market firms including Fanatics, FanDuel, PrizePicks, and Underdog have entered the space. Analysts flag potential regulatory scrutiny due to child appeal and income-generation ads.
SCCG Take — The format supplies sportsbooks a collectibles bridge to new users but invites reclassification risk. Platforms should track enforcement signals before scaling.
Digital pack rips have expanded into a substantial business that intersects with sports wagering and prediction markets. Bank of America analysts Julie Hoover and Shaun Kelley report that weekly active users for pack-ripping apps have increased from roughly 50,000 a year ago to more than 1.7 million today. The analysts estimate the category has reached $2 billion in annualized revenue, as detailed by Casino.org News.
Users spend between $1 and $500 to open a digital pack containing one sports card. Options include storing the card on the platform, receiving a physical copy, or selling it back to the operator. This mechanic blends collecting with elements of chance and trading.
Wagering Companies Already Active in Digital Rips
Fanatics holds a leading position through its ownership of Topps, the largest sports card manufacturer. FanDuel, operated by Flutter Entertainment, has partnered with Arena Club. PrizePicks and Underdog, both with daily fantasy sports origins and now active in prediction markets, maintain exposure in the space. Crypto.com has entered directly, while Coinbase Global faces rumors of a similar move.
Hoover and Kelley state that just as prediction markets expanded the total addressable market for sports betting, rips could be the next big expansion for gaming and lottery mechanics.
Regulatory Risks on the Horizon
The format has drawn comparisons to prediction markets, including advertising that frames digital rips as a source of income for everyday expenses. Sports card collecting has traditionally targeted children, raising questions about gamification. Hoover and Kelley wrote that as the category grows, it could also come under greater legal scrutiny, especially given the popularity of trading cards with kids.
Operators entering this space must weigh the user acquisition benefits against the possibility of reclassification. The precise regulatory boundary remains unresolved and will shape how these activities scale alongside established betting products.
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