Jay-Z applies to open New York sportsbook
The entrepreneur and rapper will look to compete with other applicants such as FanDuel and DraftKings.
With sports betting edging closer to launch in New York State, a number of popular sportsbooks have applied for a license to operate there. Among this list, somewhat surprisingly perhaps, is rapper and entrepreneur Jay-Z.
From his application it is understood that he will partner with fellow businessman Michael Rubin to form Fanatics Sportsbook. This new sports betting platform will utilize Kambi’s sports wagering technology.
If the two wish to gain a sports betting license for the state of New York they will be competing with the country’s largest sportsbooks, including, FanDuel, DraftKings, BetMGM, Caesars Sportsbook and WynnBET. It has been suggested that the state will allow a minimum of two operators to gain licenses.
Fanatics, the company that Jay-Z will use to launch this sportsbook is currently valued at $18bn, this represents triple of the previous year’s valuation. Jay-Z contributed to an investment into the company of $325m raised by founder Michael Rubin. Other investors include Todd Boehly, Roc Nation, Softbank and Silver Lake.
The New York native has previously held gaming licenes in both Nevada and New Jersey. He owned the 40/40 clubs in Las Vegas and Atlantic City, however both are now closed.
As of August 12 2021, since its launch the total US sports betting handle sits at $63.4bn, with revenue of $4.6bn. These numbers have brought states almost $660m worth of taxes since legal sports betting launched throughout the United States.
The New York State Government requested applications for mobile sportsbooks in July 2021 and hope sports wagering can launch as soon as possible.
Jay-Z’s rival applicants, DraftKings, spoke of the application in June, with its chief executive Jason Robins stating: “We are hopeful that we’ll be able to put a very competitive bid forth and be selected as one of the handful of operators in New York.”
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