Fanatics, a relatively new contender in the US sports betting arena, is progressing in New York — the largest market in the country by handle.
In 2023, privately owned Fanatics purchased PointsBet US for $225 million in a cash transaction, allowing the buyer access to regulated sports wagering. A year ago, PointsBet held slightly more than 1% market share in New York by handle, but that figure has increased markedly in the past few months.
"The Fanatics brand actually launched in March 2024, taking over from PointsBet and has since grown handle share from under 3% to just over 7% in the seven months since,” according to Eilers & Krejcik Gaming (EKG).
In September, Fanatics held the fifth position in the New York online sports betting market share, following FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.
Additional Indications of Advancement for Fanatics in New York
Placing fifth in New York may not seem impressive, but there are additional indicators of advancement by Fanatics in the fourth-largest state.
“Regardless, the general upward trend in New York and increasing marketing spend looks to be part of a national uptick,” added EKG. “Fanatics was fourth in online sports betting application download share through six weeks of NFL action, per Sensor Tower data, behind only FanDuel, DraftKings, and Hard Rock.”
The remarks regarding mobile app downloads refer to the entire US, indicating that Fanatics is achieving gradual advancements in the fiercely competitive US sports betting market — a field largely led by FanDuel and DraftKings. Fanatics provides mobile sports wagering in 22 states and Washington, DC.
The operator's positive growth in New York follows Chairman and CEO Michael Rubin's statement from two years ago, indicating that the company would probably avoid the state because of its 51% sports betting tax, the highest nationwide.
Promotional Expenditure Aiding Fanatics in New York
One reason Fanatics is gaining traction in New York is that it’s demonstrating generosity in its promotional expenditures.
“The operator has been aggressive around bonusing in recent weeks, including a 10-day free bet challenge with up to $1,000 in bonus bets for new customers,” observed EKG.
Promotional expenditures by sportsbook operators typically increase during football season, as this sport receives the most bets in the US. Nevertheless, marketing expenses have decreased in recent years as businesses have prioritized their profitability.
Fanatics' investment in that area in New York is significant and may yield benefits in customer acquisition since some competitors have reduced marketing budgets in the state to cope with the elevated taxes.
