Fanatics, sports merchandise and licensed apparel company, will launch its first sports betting app next week. As reported by the Wall Street Journal, both Ohio and Tennessee launch Monday, with other states in the pipeline.
The company boasts a database of 95 million existing global customers, for whom it plans to offer a FanCash rewards program, with deals on its merchandise and collectibles. The app will be open to the public by June.
Jordan Bender, JMP Securities Gaming Analyst, said of Fanatics’ current merchandising customer base, “What’s their actual total addressable market?”
According to Fanatics’ research, potential VIP bettors’ top reward choice would be to attend its annual Super Bowl party alongside celebrity guests.
CEO of Fanatics, Michael Rubin, plans to invest $1bn in its new sports betting division. Massachusetts and Maryland are slated for June launches with Fanatics, while the brand also claims it will be operating in 12 states by NFL season.
Though FanDuel, DraftKings and BetMGM currently hold approximately 85% of the competitive US sports betting market, Rubin said he aims for Fanatics to be “the top sports betting company in the world” in 10 years’ time.
Rubin said, “There’s not another company thinking about how you give hundreds of millions – maybe even billions – of sports fans one place to do everything they want to do digitally. Buying merchandise, buying and trading collectibles, betting on sports. Over time, watching live sports, maybe getting tickets.”
In January, Fanatics opened the first retail sportsbook inside an NFL stadium. The app, however, plans to suggest wagers based on customers’ favorite sports teams and preferences, “more like Spotify than a Vegas sportsbook.”
Fanatics has a valuation of $31bn, according to a spokesperson. Matt King, FanDuel’s former CEO, is among the team assembled for Fanatics’ betting and gaming unit.