Digital pack rips reach estimated $2.0bn annual run rate, Bank of America says
Bank of America reports rapid user growth and at least 6% operator take despite regulatory scrutiny
Key Takeaways
- Bank of America estimates a $2.0 billion annual run rate for digital pack rips as of a report shared 11 November 2026.
- Weekly active users grew from about 50,000 to over 1.7 million in roughly twelve months.
- App operators retain at least 6% of user spending on digital packs that contain random cards.
- The $2.0bn estimate excludes revenue from live breaking, an adjacent product where users buy shares of cards opened live.
Bank of America estimated an annual run rate of $2.0 billion for digital pack rips in a report shared with Sportico on Wednesday, 11 November 2026. The report says the industry grew from about 50,000 weekly active users to more than 1.7 million in roughly twelve months, and that app operators retain at least 6% of user spending on packs.
How they work and why large companies are attracted
Digital packs contain a random trading card and, the report finds, the average card value is typically below the entry price. Bank of America compares the product economics to “a slot machine.” Gaming platforms such as [Underdog](/sports) and [PrizePicks](/sports) led recent gaming-industry entry into the segment, while collecting heavyweights like PSA and Fanatics and several startups already have sizeable user bases.
Regulation and legal position
The report emphasises that digital pack rips are regulated as a form of e-commerce rather than gambling, which allows them to be offered nationally without paying special gambling taxes (vice taxes). Bank of America adds that, if the cards remain backed by physical inventory, legal experts consider the category to have solid regulatory footing:
"If pack rips continue to grow in popularity, we expect the industry to face increased scrutiny, 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." — Bank of America
Some firms argue digital pack rips are an extension of collecting: customers can request that the physical equivalents of cards received in apps be shipped to their home.
Risks and market responses
Ken Goldin, founder of Goldin Auctions, warns that digital rips could encourage addictive behaviour among a young demographic already exposed to online betting products, from prediction markets to casinos. The report also highlights that most users in digital-rip apps choose to sell their cards back to the platform immediately.
Limits of the calculation and adjacent products
The $2.0 billion estimate excludes revenue from live breaking, an adjacent product where users pay for a share of the cards streamers obtain when opening physical packs live. For example, someone could pay $300 to reserve all Dallas Mavericks cards a streamer gets in a live opening session. Fanatics operates both a digital rips app and a live breaking app, while Underdog and PrizePicks offer only the former.
Bank of America concludes digital pack rips are the most attractive short-term opportunity for online sports betting operators, while acknowledging the rapid growth of live breaks.
Frequently Asked Questions
What is the estimated annual run rate for digital pack rips?
Bank of America estimates an annual run rate of $2.0 billion, according to a report shared with Sportico on 11 November 2026; that figure excludes live breaking revenue.
How many weekly active users does the industry have?
The industry grew from about 50,000 to more than 1.7 million weekly active users in approximately twelve months, per the Bank of America report.
What percentage do app operators retain from pack spending?
App operators retain at least 6% of user spending on packs that contain a random card, according to the same report.
Does the $2.0bn estimate include live breaking revenue?
No — the $2.0 billion estimate explicitly excludes live breaking, where users pay for a portion of cards streamers open live.
Tags
About the author
Emilio Navarro
Industry Technology Correspondent
Emilio Navarro covers the cross-cutting technology and business of iGaming — platforms, data and AI, compliance tooling, affiliate marketing, financial results, and the stories that fit no single rubric. The reports open with the announcement, cite vendors and figures exactly as published, and keep a healthy distance from press-release language. When a supplier unveils a new engine or the advertising rulebook changes, Emilio Navarro reports what genuinely changes.
More from Emilio Navarro
