• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Fanatics CEO Michael Rubin Targets January For Company’s Sports Betting Launch

Rubin expects Fanatics to be live with sports betting in 15-20 states by the 2023 football season

Matt Rybaltowski by Matt Rybaltowski
October 11, 2022
in Industry
fanatics sign

Geoff Burke/USA TODAY

Share on FacebookShare on Twitter

Less than a week after reports surfaced that ESPN may be close to entering the U.S. legal sports betting waters, Fanatics made news regarding its own sports betting plans on Tuesday.

Speaking at the CAA World Congress of Sports in New York, Fanatics CEO Michael Rubin announced that the company will launch its new sports betting division early next year, in January 2023. The entry of Fanatics into the U.S. sports betting industry will coincide with the NFL playoffs, giving the prominent sports merchandiser ample opportunity to test whether customers will mix multi-leg parlays with the jersey of their choice.

By January, Fanatics plans to launch sports betting operations in every major state except for New York, Rubin said at Tuesday’s panel. Last fall, Fanatics appeared close to receiving a coveted bid for a mobile sports betting license in New York, but it missed the final cut.

Fanatics CEO Michael Rubin said the company will begin launching its sports betting business in multiple states starting in January 2023. https://t.co/9L36A4MmEU

— Roundhill Investments (@roundhill) October 11, 2022

At the completion of a closely watched competitive bidding process, the New York State Gaming Commission selected nine online sportsbook operators, including industry heavyweightsΒ BetMGM, Caesars Sportsbook, DraftKings, and FanDuel. The state has imposed a 51% tax on online gross gaming revenues, a levy that ties it with New Hampshire for the highest sports betting tax rate in the nation.

“We’ll be in every major state other than New York, where you can’t make money,” Rubin said. “We do like to make money, by the way. It’s this crazy concept in business — where we have revenue, we try to have profits that follow it.”

ESPN is believed to be nearing a deal to license its sports betting brand to DraftKings, Bloomberg reported last week. The potential entry of ESPN and Fanatics into the sports betting industry by early next year could add two sharks to an already crowded pool.

Converting seasoned players from other books

The long-awaited entry of Fanatics into the sports betting space has been largely viewed as a pending threat by its potential sportsbook competitors. Whereas traditional sportsbooks have offered inducements such as boosted bets and free wagers to bring on new customers, Fanatics has another arrow in its quiver. Fanatics views itself as a one-stop shop for fan entertainment inside a stadium, with the objective of becoming aΒ  “global digital platform for sports,” Ari Borod, the company’s chief commercial officer for betting and gaming, told Sports Handle this spring.

Fanatics, according to its website, has more than four dozen physical stores worldwide, including prominent stadium and arena venues across the U.S. The company also provides a blended, end-to-end e-commerce and brick-and-mortar solution for more than 50 professional sports and college programs, through licensing agreements with the top four North American professional sports leagues, the NCAA, and MLS, among others. Fanatics, which has a valuation north of $20 billion, also has a vast database of rabid sports fans to tap into for sports betting.

"In the betting business, we're going to start launching multiple states in January."

CEO @michaelrubin announced that @Fanatics' betting business will be in every major state other than New York by next football season. #SBJWCOS pic.twitter.com/7TCexeFzFQ

— Sports Business Journal (@SBJ) October 11, 2022

One option promoted on the Fanatics site allows fans to receive orders directly from their seat through a mobile merchandising delivery capability. Speaking at the Saratoga Racing and Gaming Conference in August, JMP Securities analyst Jordan Bender noted that Fanatics could utilize its team partnerships inside a stadium environment for customer acquisition purposes.

β€œI do expect them to get very creative in leveraging that real estate and those relationships into other in-stadium sportsbooks,” Bender said.

Within the confines of a stadium, a target customer at Fanatics will likely engage in other activities beyond wagering on sports. The customer may be interested in purchasing a Tom Brady jersey, as well as a New England Patriots hoodie, while trading a popular non-fungible token (NFT). Although Fanatics has yet to publicly release renderings of its mobile sportsbook, the company theoretically could offer the disparate options through a common wallet.

Rubin believes that the breadth and depth of Fanatics’ offerings will allow the company to differentiate itself from its competitors. He even gushed earlier this year that Fanatics will have drastically lower customer acquisition costs than traditional sportsbooks. The claims have been met with skepticism by Wall Street, with one analyst telling Sports HandleΒ that it’s hard to envision Fanatics acquiring thousands of customers simply by “offering them a free hat.”

Renewed calls for acquisition targets

Bender appeared on a panel in Saratoga titled “M&A Investment Trends In Sports Betting and Online Gaming.” Another panelist, David Isaacson of Spectrum Gaming Group, is focused on the customer acquisition metrics that could indicate whether Fanatics is successful. A typical sports bettor places wagers on approximately three distinct apps, according to Betting Hero, with the total fluctuating somewhat based on their state. From the outset, Fanatics will be tested on whether it can convert customers from the top books that have received a head start of several years.

Since Fanatics already has a robust customer database, there is sentiment across the industry that the company will be able to spend less to acquire customers. The balancing act in effectively marketing a sportsbook product without spending to the moon represents one of the biggest challenges for top sportsbooks. Conversely, if there are indications that Fanatics has to spend as much as DraftKings and FanDuel on customer acquisition, it could provide signals that the company has not excelled at converting customers, Isaacson explained.

Rubin’s comments Tuesday may reignite speculation that Fanatics is pursing a major acquisition. If Proposition 27 passes in California, Fanatics will need to maintain market access in at least other 10 states before launching online sports betting in the Golden State. Reports surfaced in June that Fanatics engaged in discussions with Tipico on a potential acquisition.

By the start of the 2023 football season, Fanatics intends on becoming operational with sports betting in about 15-20 states, Rubin said Tuesday.

Jill R. Dorson contributed to this story.

ShareTweetShare
Matt Rybaltowski

Matt Rybaltowski

Matt is a veteran writer with a specific focus on the emerging sports gambling market. During Matt's two decade career in journalism, he has written for the New York Times, Forbes, The Guardian, Reuters and CBSSports.com among others. In his spare time, Matt is an avid reader, a weekend tennis player and a frequent embarrassment to the sport of running. Contact Matt at [email protected]

Related Posts

whats on tap
Industry

What’s On Tap: Elite Eight, WBC Finals, And Texas Sports Betting Hearing

March 20, 2023
get a grip graphic
Industry

Get A Grip — The Week In Sports Betting: New York Cools Off

March 17, 2023
Load More

Top Stories

taylor mathis

Taylor Mathis Got Sacrificed At The Altar Of Responsible Gambling

March 20, 2023
fanduel baseball wall

Premade Same Game Parlays Are Sucker Bets

March 13, 2023
maginfier-over-small-print

Read The Fine Print: A Proposed Federal Rule Could Change Everything For Indian Gaming

March 6, 2023
roman reigns wwe

Colorado Denies Report Stating That It’s Considering WWE Wagering

March 8, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
March 20, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 16, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
October 20, 2022

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright Β© 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News

loading

Please wait while you are redirected to the right page...

Please share your location to continue.

Check our help guide for more info.

share your location