By Ryan Prete, Jan 16, 2024
Fanatics, a global digital sports platform, is actively expanding its presence within the sports betting industry–a dynamic and fast-growing entertainment sector in the U.S.–as part of its broader mission in the sports entertainment and merchandise arena.
The sports betting industry has experienced a meteoric rise since the U.S. Supreme Court 2018 landmark ruling, enabling state-by-state adoption. As numerous states moved to legalize the activity, several leading sportsbook operators started to gain increased recognition and market share. This growth, however, unfolded in a landscape marked by evolving regulations and intense competition.
Almost six years following the Supreme Court’s ruling, sports betting is now legal in various formats–both through physical or online sportsbooks–in 38 states, with revenues reaching over $25 billion in 2023, according to Legal Sports Report. The entertainment software sector has also seen increased fundraising volumes from institutional investors, with private equity and venture capital firms completing some 2,300 deals within the space in 2023.
While companies that focus solely on sports betting–such as DraftKings, FanDuel, Caesars, and MGM Entertainment–have amassed a large nationwide following among sports bettors, Fanatics is working to carve out its market share. .
Launched in 2021, Fanatics’ sportsbooks are currently active in 10 states, with ambitions to expand into additional regions in early 2024. Fanatics differentiates itself from competitors by offering an array of unique features for sports bettors that register with their platform; allowing the company to use their established merchandise, memorabilia, and entertainment catalog to their advantage.
Let’s explore how Fanatics is rapidly carving out its own niche in the burgeoning US sports betting industry.
With over 90 million customers, established relationships with more than 900 sports properties–including every major professional sports leagues and numerous collegiate teams–Fanatics boasts a built-in audience primed for betting. The company integrates betting options into their existing ecosystem, making it easy for fans to transition from buying merchandise to placing wagers.
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Fanatics leverages extensive customer data to offer a personalized betting experience. Their app suggests sports bets aligned with a client’s favored teams, players, and betting history, aiming to create a more engaging experience.
Fanatics goes beyond standard bonus and promotional betting procedure, offering exclusive rewards like signed jerseys, meet-and-greets with athletes, or VIP access to events. These exclusive offerings separate them from other sports betting outlets.
Through partnerships with established operators, Fanatics navigates the complex legal landscape and leverages existing expertise, while ensuring their betting lines, odds, and payout metrics are competitive and up to date. Fanatics arguably made its largest splash in the sports betting space last May, when the company agreed to acquire the U.S. operations of PointsBet, a licensed corporate bookmaker, in a deal worth around $150 million in cash.
Fanatics’ app is recognized for its sleek interface, intuitive design, and emphasis on speed, reflecting the company’s commitment to a seamless betting experience. This focus on user-friendly technology is designed to enhance the gambling environment for both existing and future customers.
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Fanatics envisions a future where sports fandom and betting are intertwined. Their app offers not just bets, but also live scores, merchandise discounts, and exclusive experiences, blurring the lines between fan and bettor. Imagine earning “FanCash” for every bet you place, which can then be used to buy your favorite team’s jersey or tickets to a game.
Alongside Fanatics’ vast umbrella of sports entertainment and merchandise offerings, the company’s sports betting business is navigating a path of growth. Looking ahead, the company anticipates the potential expansion of its gambling operations to additional states, possibly reaching up to 16 by 2024 (subject to changing market conditions and regulatory approvals). Fanatics, drawing on its experience in sports merchandise and entertainment ,aims to inject a dose of fresh energy into the diverse and ever-evolving sports betting landscape. For more insights into Fanatics and its expanding range of offerings and capabilities, visit the Linqto platform.
This material, provided by Linqto, is for informational purposes only and is not intended as investment advice or any form of professional guidance. Before making any investment decision, especially in the dynamic field of private markets, it is recommended that you seek advice from professional advisors. The information contained herein does not imply endorsement of any third parties or investment opportunities mentioned. Our market views and investment insights are subject to change and may not always reflect the most current developments. No assumption should be made regarding the profitability of any securities, sectors, or markets discussed. Past performance is not indicative of future results, and investing in private markets involves unique risks, including the potential for loss. Historical and hypothetical performance figures are provided to illustrate possible market behaviors and should not be relied upon as predictions of future performance.
Ryan is a financial writer for Linqto, known for his original blog content, articles, and other works. He previously worked as a financial writer at PitchBook Data, where he covered private equity, and as a reporter for Bloomberg in Washington D.C.,where he reported on tax policy. Ryan has also reported on cybersecurity policy for Inside Washington Publishers. His work has been featured in The Wall Street Journal, Axios, Yahoo News, and Reuters. He is a graduate of the University of California, Santa Barbara.
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