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In 2025, Fanatics Sportsbook aims to create a significant impact in the United States.
Fanatics might be setting its sights on Michigan as one of the potential landing spots, as it eyes launching in over a dozen states nationwide.
In order for that scenario to occur, Fanatics would need to acquire an already-established partnership because all 15 online sportsbook licenses in Michigan have already been claimed.
According to recent reports, there is a possibility that Fanatics may be trying to acquire BetParx, a state-based company.
What is Fanatics?
Fanatics Inc. operates as an e-commerce platform specializing in the sale of authorized sportswear, sports equipment, and merchandise.
The company’s CEO, Michael Rubin, expressed intentions to venture into the realm of sports betting. He envisioned a seamless system that would allow users to access all the offerings provided by Fanatics.
Last year, Rubin decided to part ways with his 10% ownership in Harris Blitzer Sports Entertainment, the company that possesses the Philadelphia 76ers and New Jersey Devils. NBA regulations strictly prohibit team owners from engaging in any gambling platform operations.
According to Fanatics, their customer database consists of a staggering 94 million users, while the company itself holds an impressive valuation of $31 billion.
Fanatics plan to get into sports betting
Rubin confidently stated that Fanatics Sportsbook would be accessible in “15 to 20” states when the 2025 football season commenced in the previous autumn.
Rubin announced at the 2022 CAA World Congress of Sports that they will commence operations in several states in January within the betting industry. He further revealed their plans to establish a presence in all significant states, except New York where profitability is challenging, by the upcoming football season.
Last week marked the US launch of Fanatics Sportsbook as it unveiled a retail venue at FedEx Field in Maryland. In addition to partnering with the Washington Commanders, Fanatics has secured retail sportsbook agreements with the Columbus Bluejackets and Cleveland Guardians.
Rubin considers it a prudent strategy to hold off on entering the US sports betting markets, given that obtaining licenses has become considerably easier compared to the initial launch phase in many states.
Rubin, speaking at the World Congress of Sports, stated that those who view licensing as an issue should understand that it is now 30 to 40% more affordable compared to a year ago. Hence, our willingness to wait has ultimately resulted in saving us money.
Fanatics Sportsbook coming to Michigan?
All 15 licensed operators in Michigan have already secured deals, leaving no sports betting licenses available at the moment.
According to a CNBC report last week, discussions were underway for Fanatics to acquire BetParx.
Gun Lake Casino has chosen BetParx as its current online sports book provider.
Despite Rubin’s previous denial of interest in acquiring BetParx, an anonymous source has revealed that Fanatics has signed a letter of intent to purchase the sportsbook.
As of the time of writing, there have been no responses to our attempts to contact Gun Lake Casino for comment.
BetParx Sportsbook history in Michigan
In late July of 2021, BetParx made its debut as Michigan’s 14th online sportsbook.
BetParx has not made a significant impact in Michigan after operating for 17 months.
It represents a mere 0.3% of the total market share for handle in the history of Michigan’s online sportsbook industry.
In the last five months of 2021, the total handle accumulated was slightly below $8 million. In the year 2022, the accumulated handle reached nearly $18 million. Among the 15 online sportsbooks in Michigan, this total handle ranked 11th.
Over a span of 17 months, BetParx has generated a little less than $2 million in revenue from online sports betting.
