Published on: November 29, 2024, 01:21h.
Last updated on: November 29, 2024, 01:21h.
Fanatics is showing growth in the US online sports betting (OSB) market, positioning itself as a strong contender in the industry in the long run.
Acquiring PointsBet US in 2023 for $225 million in an all-cash deal, Fanatics has entered the North American online sports wagering market, previously dominated by PointsBet with low market share and profitability concerns.
Since then, Fanatics has seen a significant rise in market share, reaching 4.8% of the US OSB market by October, a substantial growth from less than half a percent in November 2023, as reported by Eilers & Krejcik Gaming (EKG).
The success of Fanatics in the US OSB market can be attributed to its focus on customer acquisition and retention strategies.
Technology, VIP Focus Helping Fanatics OSB Ascent
With a strong emphasis on technology and targeting high-value customers, Fanatics is gaining market share and enhancing its position in the industry.
The Fanatics OSB app has shown improvement in promotional offerings, cash-out features, and SGP availability, ranking third in our 2H24 testing report,” noted EKG. “This indicates an increase in customer retention, particularly focusing on VIP customers.
Recent developments show Fanatics making significant progress in the US OSB sector, particularly in New York, the largest state in terms of sports wagering revenue and volume. Despite initial reservations due to high taxes, Fanatics has made notable strides, ranking fifth in New York’s online sports betting market share.
Fanatics’ advancements in New York are noteworthy given the competitive landscape and challenges faced by the industry, showcasing its commitment to growth and innovation.
Long Way to Go, But Fanatics Progress Evident
While FanDuel and DraftKings dominate the US OSB market, Fanatics is emerging as a strong competitor thanks to effective marketing strategies and customer-focused initiatives.
“With increasing customer value and enhanced promotional activities, Fanatics is positioning itself as a key player in the industry, capable of challenging the existing duopoly,” added EKG. “Expanding its mobile sports betting offerings to more states, including Missouri next year, further demonstrates its commitment to growth and expansion.”