The most anticipated new player in the sports betting game took its training wheels off on Wednesday. That's when Fanatics Sportsbook moves from beta testing to full speed ahead in four states — Maryland, Massachusetts, Ohio and Tennessee.
Although Fanatics' entry into the sports betting space comes more than five years into the legalized sports betting space in the U.S., there’s optimism that the company — the world’s largest officially licensed apparel maker and huge player in the sports collectibles market — can take a meaningful share.
In the last 45 days, Fanatics agreed to buy PointsBet for $225 million, while the market saw FOX Bet cease operations and WynnBET shutter in eight markets. PENN also made the move to wind down its Barstool Sportsbook in favor of a 10-year, $2 billion alliance with ESPN.
Fanatics — which unlike its competitors, is private and doesn’t yet have to worry about appeasing shareholders — will combine PointsBet’s risk tech with their in-house built product.
While still in beta, Fanatics took in $2.35 million in bets in July in Massachusetts, good for 0.8% market share.
The company hopes that its innovations, including FanCash — which allows bet rewards and winnings to be converted to purchases on Fanatics — helps lead to more downloads and adoption in its arms race against FanDuel and DraftKings, the market leaders in the U.S. Bettors earn as much as 5% of the amount they bet in FanCash, with that top tier associated with Same Game Parlay bets.
The company also seeks to build brand through retail books. The company currently has two books in Ohio and one at FedEx Field, the home of the Washington Commanders, the only sportsbook inside an NFL stadium. The brand is also opening a book on Friday inside Progressive Field, the home of the Cleveland Guardians.