FanDuel is testing digital card rips through Derek Jeter's Arena Club

FanDuel is testing customer interest in digital card ripping through a rewards offering linked to Arena Club, the collectibles platform co-founded by baseball legend Derek Jeter.

The trial was revealed in exclusive reporting by Nick Devor at Barron's, who spoke with Flutter Entertainment CEO Dan Taylor about the company's interest in the growing digital collectibles category.

"We've been tracking the rips product very closely," Taylor told Devor. "We've done some trials already, and those trials have gone very well."

The move makes FanDuel the latest major sports gaming company to experiment with digital card ripping, following launches by PrizePicks and Underdog Rips.

However, FanDuel hasn't launched its own digital rips product. For now, the company is testing customer interest through an existing third-party platform.

How FanDuel's digital rips trial works

The trial is limited to members of the FanDuel Rewards Club.

Eligible customers can select a reward that directs them to Arena Club, a digital card ripping platform where users can open virtual packs containing collectible trading cards.

FanDuel is using engagement with the reward to assess customer interest in the category.

The arrangement allows FanDuel to test demand without immediately developing its own digital ripping platform.

Taylor declined to provide a timeline for a potential standalone FanDuel product.

The trial also appears to focus on expanding the company's loyalty offerings beyond traditional sportsbook rewards, such as bonus bets.

Whether FanDuel eventually integrates digital rips directly into its app is still uncertain.

Why sports gaming companies are embracing digital rips

Digital card rips combine the experience of opening mystery trading card packs with an online platform.

Customers typically purchase packs without knowing which cards they'll receive. Depending on the operator, they may then be able to sell, store, or arrange delivery of their cards.

The category has attracted attention from companies already serving sports fans through fantasy contests, betting, and prediction markets.

PrizePicks recently launched its digital ripping product, including the opportunity to pull a rare Cooper Flagg rookie card valued at approximately $8 million.

Underdog has also entered the market, while Fanatics offers Instant Rips through Fanatics Live.

For companies such as FanDuel, digital rips offer another way to engage sports fans beyond conventional wagering.

Taylor acknowledged the crossover in his comments to Devor.

"There are lots of different products that fulfill the different customer needs for risk-taking," he said.

Could FanDuel launch its own digital rips platform?

FanDuel's digital rips trial fits into a broader effort to expand its product offering and improve customer loyalty.

In its November 4 earnings update, parent company Flutter Entertainment highlighted the expansion of FanDuel Rewards as a key part of its strategy to increase engagement.

The company reported that US sportsbook player frequency increased 4% and bet count rose 15% year over year during the third quarter.

Flutter CEO Dan Taylor also stressed the need for faster product innovation and greater investment in opportunities that can strengthen FanDuel's position.

The trial comes during a leadership transition, with Christian Genetski set to become FanDuel's permanent CEO on January 1, 2027.

Digital rips could eventually become part of FanDuel's wider product strategy, although the company has not announced plans for a standalone offering.

For now, directing customers to Arena Club allows FanDuel to gauge interest without building its own digital collectibles platform.

But the arrangement also presents a potential trade-off.

Introducing customers to Arena Club could strengthen the appeal of FanDuel's loyalty program while also encouraging them to spend money on a separate platform.

That makes the trial particularly useful as a way to measure whether customer engagement and retention justify deeper involvement.

There is also a distinction between offering digital rips as a loyalty reward and operating a full digital collectibles marketplace.

For now, FanDuel is doing the former.

Another sign digital rips are gaining momentum

FanDuel's involvement adds another major name to a category already attracting sports gaming operators, collectibles platforms, and companies outside traditional gambling.

The growing interest from major sports gaming companies also reflects the expanding range of platforms that are available to collectors. Dimers recently launched a dedicated Card Rips section, featuring platform reviews, comparisons, and guides to help consumers navigate the category.

FanDuel's decision to test demand through Arena Club, rather than launch a competing product immediately, suggests a cautious approach.

But the broader direction is becoming clearer.

Digital card ripping is no longer limited to dedicated collectibles platforms. It's increasingly attracting companies with established audiences across sports betting, fantasy sports, and prediction markets.

Whether FanDuel ultimately launches its own product remains to be seen, but its latest trial shows that the industry is taking digital rips seriously.