Fanatics Sportsbook is entering the New York sports betting race. On Aug. 3, the New York State Gaming Commission (NYSGC) discussed what will happen now that Fanatics purchased the US holdings of Australian online gambling operator PointsBet.
PointsBet Sportsbook is one of nine sports betting operators licensed in the No. 1 revenue-generating state. So while Fanatics is already accepting bets in four states, New York may be Fanatics’ most significant bragging right.
NYSGC Executive Director Robert Williams said during this afternoon’s meeting:
Now’s the time for us to at least commence that conversation.
The commission talked to regulators in the states where Fanatics is live:
- Massachusetts
- Maryland
- Ohio
- Tennessee
Williams said only Ohio regulators objected to a Fanatics promotional practice but never fined the new operator. Fanatics has 12 more pending markets it can enter, he added.
Williams said the commission began vetting Fanatics in April when it learned Fanatics Betting and Gaming (FBG) planned to buy PointsBet’s US assets.
On June 30, PointsBet shareholders approved FBG’s $225 million bid. That happened despite a short diversion from DraftKings (DraftKings 39,28 +3,37%). That online gambling operator submitted a bid that PointsBet Holdings Limited (PointsBet Holdings Limited 0,46 +2,95%) declined.
Buying PointsBet will also allow Fanatics to offer online casino gambling in several states. New York isn’t one of them because it hasn’t yet legalized iGaming.
Fanatics Sportsbook Will Be Coming From Behind
Williams said PointsBet is No. 6 in revenue among the state’s nine sports betting operators.
FanDuel and DraftKings are the frontrunners in the race that began on Jan. 8, 2022.
Speaking from Saratoga Springs today during the NYSGC meeting that started an hour late, Williams relayed that Fanatics believes it has an advantage that will help it pull ahead.
Because Fanatics is primarily known for its sports merchandise, it has a formidable customer database already “scrubbed” of anyone under 21, Williams said.
While Williams didn’t specify what that meant, marketers know that customer databases present opportunities to sell new products to existing buyers. So Fanatics can promote legal New York sports betting to sports merchandise customers 21 and older.
Plus, it will be using PointsBet tech when the transition happens.
After Williams’ presentation, NYSGC Chairman Brian O’Dwyer emphasized that the commission will review Fanatics’ marketing and advertising “closely” to ensure past mistakes aren’t repeated.
He was alluding to marketing and advertising from New York’s existing sports betting operators that spurred the commission to tighten its rules in February.
Where Fanatics Sportsbook May Launch Next
Williams ran down what he knew about Fanatics Sportsbook’s next steps.
He said Colorado and Iowa sports bettors may see the Fanatics app soon. Then Kansas and Virginia regulators may consider allowing the change at the end of the month.
Meanwhile, New Jersey regulators are looking into the switch, Williams concluded.
FBG didn’t immediately return a request for comment from Bonus today about the commission meeting.
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