Fanatics is achieving progress in the US online sports betting (OSB) market share, suggesting that it may become a strong competitor in the industry in the long run.
Privately owned Fanatics purchased PointsBet US in 2023 for $225 million in an all-cash transaction, allowing the apparel giant’s betting and gaming division to venture into the regulated North American online sports wagering market. When the agreement was made, PointsBet’s share of the US market was minimal and the company was not making a profit, highlighting the reasons the Australian parent opted to sell the business.
Since that time, Fanatics has achieved notable increases in market share, reaching 4.8% of the US OSB market by the end of October, a rise from under half a percent in November 2023, as reported by Eilers & Krejcik Gaming (EKG).
A graph of Fanatics sports betting market share gains. (Image: Eilers & Krejcik Gaming (EKG))
The research company observed that Fanatics is advancing in the US OSB sector by emphasizing the fundamentals of acquiring and retaining customers.
Technology, VIP Attention Assisting Fanatics OSB Rise
Fanatics' focus on technology and the retention of the right clientele — specifically high-end bettors — are some of the factors contributing to the operator's market share growth.
"The Fanatics OSB app was up to third in our 2H24 testing report, with major improvements in its promotional offerings, as well as its cash-out and SGP availability,” noted EKG. “That means more customers sticking around longer, but we also suspect Fanatics is getting better at profiling and keeping the right customers around longer, with VIPs clearly a focus.”
Lately, there have been signs of Fanatics gaining traction in the US OSB sector, particularly in New York. That’s the biggest state in terms of sports betting GGR and total handle. In September, Fanatics was positioned fifth in the New York online sports betting market share, behind FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.
Fanatics’ progress in New York is remarkable not just because it’s the biggest OSB market in the nation, but also due to Chairman and CEO Michael Rubin's statement two years ago that the company would probably forgo the state because of its burdensome 51% sports betting tax.
Significant Distance to Cover, yet Fanatics' Advancements Clear
The present landscape of US OSB is a duopoly dominated by FanDuel and DraftKings, while almost all other rivals find it difficult to achieve double-digit market shares. That’s a challenging peak to ascend, yet Fanatics is progressing, partly due to successful promotional investments.
"With customer values thus trending in the right direction, Fanatics seems more willing to spend on acquisition, with bonusing also climbing in recent months and peaking at 100% of GGR in October in reported states,” adds EKG. “Tie it all together and Fanatics—along with bet365—looks to be one of the challenger brands capable of making a dent in the U.S. duopoly.”
Fanatics provides mobile sports wagering in 22 states plus Washington, DC. That number is expected to rise by at least one next year with Missouri's inclusion.
