Fanatics Holds 10% of U.S. Sports Betting Market as Ad Spend Set to Hit $1B

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3▲0 ▼0Impact / 5
Summary · why it matters

Fanatics now holds roughly 10% of the U.S. sports betting market and ranks fourth on a year-to-date market share basis, as CEO Michael Rubin prepares to sharply increase advertising spending. The New York City-based company expects to spend about $350M advertising its gambling business this year and could lift that figure to as much as $1B in 2027. Rubin said, "We're very focused on being number one in everything that we do." The gambling division is projected to generate roughly $2B in revenue this year, though it is unclear whether the business is profitable yet. On September 2, Fanatics launched Fanatics Sports & Casino, an app combining sportsbook, casino, and prediction-market products that adjusts availability by customer location, with betting and trading earning FanCash redeemable for merchandise, tickets, and collectibles. Investors awaiting a Fanatics IPO may have to wait well into 2027, with no signals that a public debut is imminent.

Impact on assets 2

Consumer Discretionary▲
DraftKings Inc
DKNG
± MixedCompetitionrelevance

Fanatics' 10% share and $1B ad-spend plans intensify rivalry in U.S. sports betting, pressuring DraftKings' competitive position.

Flutter Entertainment plc
FLUT
± MixedCompetitionrelevance

Fanatics' rising market share and aggressive ad spending pose a competitive threat to Flutter's U.S. betting brands.

Off-coverage companies 1

Fanaticsi
Private▲ PositiveCapitalDemandrelevance

Fanatics plans to lift gambling ad spend from ~$350M to as much as $1B by 2027, a major investment in the business.