Fanatics is built for the fans of sports—just like its name implies. It manufactures and sells apparel and memorabilia such as jerseys, trading cards, and even NFTs. Its expansion into the world of sports betting gives it a chance to become a one-stop shop for sports followers.
“[Fanatics will] connect gamblers to its rewards program for deals on merchandise, signed collectibles and access to athletes and games,” according to the WSJ.
Only Fanatics customers will have access to the betting platform upon the first launch. However, the company has ideas of expanding that and also expanding its reach, with Maryland and Massachusetts becoming early targets for the app’s next jurisdictions.
The company also hopes to be operational in at least 12 states by football season to capitalize on NFL betting, which gets underway on September 7.
Fanatics already partnered with the Washington Commanders, based in Landover, Maryland, to erect a first-of-its-kind in-stadium sportsbook that will allow game-attending fans to place bets in a dedicated gambling lounge. That development led to the NFL overriding a previous rule that said sportsbooks could be inside teams’ stadiums but could not be used during home game days.
Chairman and CEO Michael Rubin is expecting the company to become profitable by 2025 or 2026. It has already had conversations about expanding internationally to help reach that target date, even if it means suffering a larger initial deficit because of the resources required to set up shop and grow a customer base.
Company estimates revealed that Fanatics is expecting roughly $8 billion in revenue in 2023 and excludes the rights to trading cards that should come to fruition in the next few years.