Fanatics Valuation Increases On Heels Of Sports Betting Debut

Although BetFanatics Sportsbook has yet to make its official debut anywhere in the US, Maryland sports bettors will likely be the first to test it out. 

Maryland online sports betting launched on Nov. 23. Since then, several operators like Caesars, DraftKings and FanDuel have become available. However, three companies, one being Fanatics, were awarded licenses by the Maryland Sports Wagering Application Review Commission and have yet to launch. 

Customers won’t have to wait much longer, though, because BetFanatics expects to launch in January in time for the NFL playoffs. 

BetFanatics Sportsbook wants a smooth rollout

Many expected Fanatics to launch in line with other prominent online sports betting operators. Instead, the company has taken its
time and built its team to ensure the rollout of its sportsbook app goes smoothly. 

The company has already secured a deal with the Washington Commanders (NFL) for a retail sportsbook at FedEx Field. Fanatics also inked a jersey partnership with the University of Maryland football team. Each of these deals, combined with the rollout of its sports betting app, will help the company expand its reach. 

Although Fanatics has secured a few partnerships, the Maryland sports betting competition will be pretty stacked. 

The state plans to award 60 online sportsbook licenses and 30 retail licenses. 

There are already seven online sportsbooks accepting bets in Maryland.

• Barstool
• BetMGM
• BetRivers
• Caesars
• DraftKings
• FanDuel
• PointsBet

Expanding its footprint

According to Fanatics CEO Michael Rubin, the plan is to launch the online sportsbook in 15 of 20 states by the fall of 2023.

“I think in the betting business, we are going to start launching in multiple states in January. We will be in every major state other than New York, where you cannot make money, by next football season. And we do like to make money by the way. It is this crazy concept in business. When we have revenue, we try to have profits that follow it.”

To help fund its US expansion, Fanatics has raised $700 million, pushing its value to $31 billion. 

According to CNBC, the company plans include using the new money on potential acquisition opportunities in several sectors, including:

• Sports betting
• Collectibles
• Other gaming business essentials

In October, while speaking at the Sports Business Journal’s World Congress of Sports Conference, Rubin said sports betting and other fanatics business segments could reach $8 billion in annual profit in the next ten years.