Digital Pack Rips: The $2B Business Reshaping US Betting

Digital pack rips just became a $2 billion business in the United States, and operators are moving fast. Specifically, a recent BofA research note pegged that figure for the category. As a result, sportsbooks and prediction market operators now see the format as their next growth lever.

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Digital Pack Rips

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The concept is easy to follow. Someone opens a digital sports card pack on an app for as little as a dollar. The pack reveals one real card. Next, the user can ship it home, hold it in a vault, or trade it back for site credit.

Digital Pack Rips
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What Are Digital Pack Rips?

Digital pack rips start from a simple idea. Think of the old thrill of tearing open a wax pack, only on a phone screen. Each tap reveals one card pulled from a real inventory held by the operator.

Weekly user growth tells the story. Twelve months ago, the base hovered around 50,000. Today it exceeds 1.7 million. The surge explains the current rush of corporate deals, equity raises, and product launches.

Why Sportsbooks and Prediction Markets Want Into Digital Pack Rips

Operators see pack rips as a natural next step. Notably, the audience skews young, sports-focused, and already comfortable with wagering mechanics. Many are the same people buying parlays on Sunday mornings.

Fanatics leads the pack. The company owns Topps, the country’s biggest trading card brand. Additionally, Fanatics leans on its betting loyalty program to cross-sell cards to bettors. FanDuel’s deal through Arena Club targets the same space. Over at Underdog, a rips feature arrived in the app this fall. PrizePicks followed with Packs in October.

Crypto firms are circling too. For example, Crypto.com launched earlier this year, and reports suggest Coinbase is studying its own version. Similarly, DraftKings has reallocated budget to fund a wider prediction markets strategy.

Are Digital Pack Rips Gambling or Just E-Commerce?

Are digital pack rips gambling? That label sits at the center of the current debate. The experience shares the DNA of a slot pull, with random outcomes and wildly different payouts. However, every rip delivers a physical collectible rather than a cash stake.

Operators themselves have muddied the water. For instance, some marketing campaigns framed the category as a side hustle to help pay bills. That pitch is the same one prediction markets used before regulators started asking harder questions.

What Players Should Watch For

Marketing often sells the dream, but the fine print tells the real story. Before buying your first digital pack rip, keep an eye on these points:

  • Odds for each tier may or may not be disclosed, which varies by operator
  • The card you pull can be worth less than what the pack cost
  • Buybacks typically pay out in site credit rather than cash
  • Decision windows for selling back can be as short as 48 hours
  • Operator pricing drives the fair market value, not an open exchange

Trading cards built their culture around kids, parents, and corner shops. Because of this, the format may face closer regulatory scrutiny as it drifts toward real sports betting.

The Road Ahead

Growth projections for digital pack rips stay strong through 2026 and beyond. Additionally, more sportsbook and prediction market brands will likely launch rip products, strike partnerships, or acquire their way in.

Treat these platforms the same way you would any wagering account. Set a hard spend cap, read every term, and track how much you are actually risking.

Alex Harper

Alex Harper

Alex Harper is the Banking & Finance Senior Editor at CasinoUS.com, covering casino payment methods, cryptocurrency, fintech, and financial security. His work helps readers understand casino banking, withdrawals, and payment options across the US online gambling market.