Fanatics Rising in US Sports Betting
Fanatics is increasing its share in the US online sports betting (OSB) market, suggesting that it may become a significant player in this field in the long run.
In 2023, privately owned Fanatics purchased PointsBet US for $225 million in an all-cash transaction, allowing the apparel giant’s betting and gaming division to venture into the regulated North American online sports wagering market. When the deal was made, PointsBet's share in the US market was minimal, and the company was not making a profit, highlighting the reasons behind the Australian parent company's decision to sell.
Since that time, Fanatics has achieved notable increases in market share, reaching 4.8% of the US OSB market by the end of October, a rise from under half a percent in November 2023, as reported by Eilers & Krejcik Gaming (EKG).
The research company observed that Fanatics is progressing in the US OSB sector by concentrating on the fundamentals of gaining and keeping customers.
Technology, VIP Attention Supporting Fanatics OSB Rise
Fanatics' focus on technology and on attracting and retaining the right clientele — specifically high-end bettors — is one of the reasons the operator is gaining market share.
"The Fanatics OSB app was up to third in our 2H24 testing report, with major improvements in its promotional offerings, as well as its cash-out and SGP availability,” noted EKG. “That means more customers sticking around longer, but we also suspect Fanatics is getting better at profiling and keeping the right customers around longer, with VIPs clearly a focus.”
Recently, evidence has emerged showing that Fanatics is gaining ground in the US OSB industry, particularly in New York. That is the largest state in terms of sports betting GGR and volume. In September, Fanatics held the fifth position in the New York online sports betting market share, behind FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.
Fanatics' achievements in New York are notable not just due to it being the biggest OSB market in the nation, but also because Chairman and CEO Michael Rubin mentioned two years ago that the firm would probably skip the state because of its burdensome 51% tax on sports betting.
Significant Journey Ahead, Yet Fanatics' Advancement Clear
The present state of US OSB is a duopoly dominated by FanDuel and DraftKings, while most other rivals find it hard to achieve a double-digit market share. That's a challenging peak to scale, but Fanatics is making progress partly due to efficient promotional expenditures.
"With customer values thus trending in the right direction, Fanatics seems more willing to spend on acquisition, with bonusing also climbing in recent months and peaking at 100% of GGR in October in reported states,” adds EKG. “Tie it all together and Fanatics—along with bet365—looks to be one of the challenger brands capable of making a dent in the U.S. duopoly.”
Fanatics provides mobile sports wagering in 22 states and Washington, DC. That number is expected to rise by at least one next year with Missouri joining in.
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