The emergence of randomized digital card products is increasingly merging the realms of collecting and gambling, as regulatory scrutiny and concerns regarding responsible gambling are on the rise.
Platforms for digital trading cards, such as Whatnot, the crypto-based Collector Crypt, and Courtyard.io, are witnessing sales in the billions as gambling firms venture into this space. Legal challenges are prompting discussions about whether certain randomized card offerings could be classified as forms of wagering.
This rapid expansion is notably intersecting with the gambling sector. Fanatics has already made its entry, while Underdog is gearing up to launch its own digital card product. Additionally, sweepstakes operators like Crown Coins and AceBet are incorporating trading cards into their services.
Legal disputes involving Whatnot and Fanatics Live are currently assessing whether specific randomized card formats qualify as illegal gambling or lotteries.
Digital Card Market Surges to Billion-Dollar Valuation
According to Barron’s, there are 52 websites currently offering digital repacks. Collector Crypt has reported $1 billion in sales since December 2024, and Courtyard.io is projected to reach $2 billion in annual sales.
The market also encompasses significant live-shopping platforms. Whatnot claims to hold nearly 60% of the estimated $22 billion live-selling market in North America and Europe, with sports cards being the leading category in the U.S. in 2025, averaging over 6.4 million purchases monthly.
Digital repacks typically allow users to buy a pack containing a randomly selected physical card that is revealed online immediately. Depending on the platform, customers can either have the card shipped or resell it.
The resale aspect is particularly noteworthy. Tuomas Holmberg, CEO of Collector Crypt, stated that up to 98% of cards opened on their platform are sold back immediately. Data analyzed by the publication indicated that for every card physically shipped, 178 packs were opened over a six-month span.
Live box breaks function differently. Participants usually buy a “spot” linked to a team or player in a sealed box of cards. During a livestream event, a “breaker” opens the packs and distributes the cards based on what is drawn.
Gambling Firms Enter the Trading Card Market
Fanatics exemplifies the most prominent crossover between the collecting and gambling industries. Its operations already encompass collectibles, sports betting, online casinos, and prediction markets, with its collectibles division providing digital repacks through Instant Rips.
Instant Rips enables users to digitally reveal a physical card and either keep it or accept an immediate credit offer equivalent to 90% of its market value. Japanese financial firm Mizuho predicts that Fanatics’ collectibles division could generate $5 billion in revenue by 2026.
Underdog is also poised to enter the market.
Its terms of use, effective August 27, describe Underdog Rips as digital card packs supported by physical trading cards, offered in partnership with Phygitals. Customers can digitally reveal the card, then either redeem the physical card or sell it back.
Meanwhile, sweepstakes casinos are also exploring trading cards as a new revenue stream amidst increasing regulatory scrutiny.
Crown Coins is set to launch Crown Rips, which will include a digital pack containing a randomly selected sports or Pokémon card that customers can sell, store, or have shipped. AceBet.cc has adopted a different strategy, selling physical trading-card packs bundled with Sweeps Coins that can be used on casino-style games and redeemed for cash.