Digital pack rips hit an estimated $2bn annual run rate, Bank of America finds
Usage rose from ~50,000 to over 1.7 million weekly users in about 12 months, per the report.
Key Takeaways
- Bank of America estimates digital pack rips at a $2 billion annualised run rate in a client report shared with Sportico on 11 November 2026.
- Weekly active users rose from about 50,000 to more than 1.7 million in roughly 12 months, per the report.
- App operators keep at least 6% of what users spend on single-card packs that are on average less valuable than the entry fee.
- Digital pack rips are treated as e-commerce rather than gambling, allowing nationwide offers without vice taxes, but regulators may increase scrutiny.
Bank of America reported a digital pack rips industry run rate of $2 billion in annualised revenue in a client note shared with Sportico on Wednesday, 11 November 2026. The analyst report says active weekly users climbed from about 50,000 to more than 1.7 million in roughly 12 months, and app operators retain at least 6% of what users spend on packs.
Scale and economics
The report presents the core economics: packs contain one random trading card and are on average less valuable than the entry fee, yet operators keep a minimum of 6% of user spend. Bank of America likens the business model to “a slot machine.” Underdog and PrizePicks are named as recent entrants pushing gaming companies into the space, while collectible incumbents including PSA and Fanatics already have sizable user bases.
Most users on digital-rips apps sell their cards back to the platform shortly after receiving them, the report says. The Bank of America estimate explicitly excludes revenue from live breaking, a related product where customers pay upfront for a portion of cards streamers uncover when opening physical packs in real time.
Regulation, claims and legal risk
Digital pack rips are regulated in practice as a form of e-commerce rather than gambling, allowing companies to offer them nationwide without paying vice taxes, the report states. Some operators argue the product is an extension of collecting and highlight that customers may request the physical equivalents of the digital cards to be shipped to their homes.
Ken Goldin, founder of Goldin Auctions, is quoted expressing concern that digital rips could fuel addiction among a young demographic already exposed to prediction markets and online casinos.
"If pack rips continue to grow in popularity, we expect the industry to face increased scrutiny," Bank of America writes, "but based on our conversations, legal experts believe the category is on solid regulatory footing as long as the cards remain backed by physical inventory."
States remain engaged in legal disputes with prediction market operators and have not yet addressed digital card rips directly. The Bank of America note flags potential regulatory attention should consumer use rise further.
Live breaking and product overlap
Live breaking is called out separately; the report gives an example of a buyer paying $300 to reserve all Dallas Mavericks cards a streamer obtains during a live pack-opening. Fanatics operates both a digital-rips app and a live breaking app, while Underdog and PrizePicks offer only digital rips. Bank of America views digital pack rips as the more compelling near-term opportunity for online sports betting operators, while acknowledging rapid growth in live breaks.
For operator and regulatory readers, the report frames the space as commercially significant now and potentially subject to evolving scrutiny; the $2 billion figure does not capture live-breaking revenues.
Frequently Asked Questions
How large is the digital pack rips market according to Bank of America?
Bank of America estimates the industry has reached a $2 billion annualised run rate. The figure was published in a client report shared with Sportico on 11 November 2026 and excludes revenues from live breaking.
How fast has user activity grown for digital pack rips?
Weekly active users rose from about 50,000 to more than 1.7 million in roughly 12 months. That growth is reported in the Bank of America client note cited by Sportico.
What share of spend do app operators retain from pack sales?
App operators retain at least 6% of what users spend on packs, according to the Bank of America report. The packs typically contain one random trading card and are on average less valuable than the entry fee.
Do regulators treat digital pack rips as gambling?
Regulators currently treat digital pack rips as a form of e-commerce rather than gambling, which allows nationwide offerings without vice taxes. Bank of America notes legal experts view the category as on solid regulatory footing if cards remain backed by physical inventory, though scrutiny could increase with continued growth.
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Marcus Webb
Industry Deals Correspondent
Marcus Webb covers the deal flow of the gambling industry — operator strategy, M&A, market entries, and product launches from sportsbook rebrands to full platform migrations. The reports name the companies, valuations, and jurisdictions exactly as disclosed and separate the announcement from its market impact. When a group consolidates a brand or a challenger launches into a new state, Marcus Webb explains who gains, who pays, and what closes next quarter.
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