Published on: October 20, 2024, 04:00h.
Last updated on: October 19, 2024, 10:03h.
Fanatics, a new player in the US sports betting industry, is making significant progress in New York, which is the largest market in the country.
Fanatics acquired PointsBet US in 2023 for $225 million, giving them access to the regulated sports betting market. PointsBet had a small market share in New York a year ago, but has seen a significant increase in recent months.
The Fanatics brand launched in March 2024, taking over from PointsBet and has since increased market share from under 3% to over 7% in seven months,” according to Eilers & Krejcik Gaming (EKG).
In September, Fanatics ranked fifth in terms of New York online sports betting market share, behind FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.
Other Signs of Progress for Fanatics in New York
Although ranking fifth in New York may not seem impressive, Fanatics is showing other signs of progress in this state.
“The general upward trend in New York and increasing marketing spend appears to be part of a national uptick,” EKG noted. “Fanatics was fourth in online sports betting application download share through six weeks of NFL action, behind only FanDuel, DraftKings, and Hard Rock.”
The increased mobile app downloads across the US indicate that Fanatics is gradually making its mark in the competitive US sports betting market, largely dominated by FanDuel and DraftKings. Fanatics offers mobile sports betting in 22 states and Washington, DC.
The growth of Fanatics in New York follows Chairman and CEO Michael Rubin’s statement two years ago that the company might skip the state due to its high 51% sports betting tax.
Promo Spending Helping Fanatics in New York
One of the reasons for Fanatics’ success in New York is its generous promotional spending strategies.
“The operator has been aggressive with bonuses recently, including a 10-day free bet challenge offering up to $1,000 in bonus bets for new customers,” noted EKG.
During football season, sportsbook operators tend to increase promotional spending, as football is the most popular sport for betting in the US. However, promotional expenses have been decreasing in recent years as operators focus on profitability.
Fanatics’ focus on promotional spending in New York is important and could lead to increased customer acquisition in the state, especially as some competitors have reduced marketing investments due to high taxes.