Fanatics is a relative newcomer to the online sports betting party but its aggressive expansion has been almost fanatical. And in what should prove to be one of the company’s most lucrative jurisdictions, Pennsylvania was recently added to its growing list of markets.
Double Dip in Pennsylvania
Mobile sports betting is prevalent throughout the United States, with only about a dozen US states still not availing themselves of the untapped tax revenue stream. However, online casino gambling, or iGaming, has been much slower to grow with only six states currently permitting it with Rhode Island on deck for a launch in March.
Therefore, when Fanatics launched its mobile sportsbook in Pennsylvania, it was also able to go live with its online casino platform. It was a double dipper into Pennsylvania’s vibrant online gaming market and only the company’s second iGaming jurisdiction after West Virginia. Those who had previously had PointsBet iGaming accounts in the Keystone State migrated to Fanatics once it went live.
As some of you may know, Fanatics purchased PointsBet’s U.S. operations for $225 million last June, and included in those assets were its sports betting and iGaming customers in Pennsylvania. But that was on the old PointsBet platform in which those customers are now on the upgraded Fanatics app.
Fanatics has partnered with Evolution to bring live dealers of blackjack, roulette, craps, baccarat, and several poker-style games to its online customers. The virtual slots on Fanatics’ iGaming menu are courtesy of a partnership with Light & Wonder.
Fanatics Differentiates Itself
Fanatics originally started as a sports merchandising company before it hatched Fanatics Betting & Gaming. The tens of millions of customers from its retail sports apparel business were a natural fit for its newly formed mobile sports betting operation. It only stands to reason that those who purchase sports merch would likely be interested in betting on those teams and wagering on sports in general.
It is a symbiotic relationship and so far, so good. The company is aggressively expanding its sports betting operations, currently in 11 states including those markets in which it purchased PointsBet’s platforms, which include: Maryland, Massachusetts, Ohio, Tennessee, Colorado, Iowa, Kansas, New Jersey, Pennsylvania, Virginia, and West Virginia.
The concept of FanCash aligns with its sports merchandizing roots where customers can get up to 5% of their wagers back in FanCash. A dollar of FanCash is equal to a dollar that customers can spend on Bonus Bets or at Fanatics.com in the form of merchandise.
At the beginning of last year, Fanatics’ Betting & Gaming owner, CEO Michael Rubin, had reeled in his expectations from Fanatics being present in 15-20 states before the start of the 2023 NFL season to 12-15.
Fanatics B&G CEO Matt King said. “We are excited about what we are building at Fanatics Betting and Gaming and this acquisition accelerates our plans. We have a ten-year plan that focuses on the customer and not market share. We are going to acquire customers efficiently, allowing us to return savings to customers by investing in the customer experience at Fanatics Sportsbook and PointsBet, a Fanatics Experience.”