Sports merchandise giant Fanatics is accelerating its expansion into the gambling landscape, launching standalone online casino apps in four US states, officially entering the realm of traditional casino games such as slots and blackjack. This move marks a critical step for the company from sports betting to a broader digital entertainment market.
Fanatics' President of Betting and Gaming, Conor Grant, admitted in an interview: "We indeed face formidable challenges." As a newcomer to the market, Fanatics not only has to confront competition from fantasy sports giants like DraftKings and FanDuel but also from traditional casino brands like BetMGM and Caesars Entertainment. However, the company holds a trump card—a massive database of over 100 million users who have purchased jerseys and memorabilia, who will become its natural potential customer base.
Market analysts point out that Fanatics' unique advantage lies in its innovative loyalty program. Unlike competitors who mainly offer gambling points, the company can link casino rewards with physical goods. To promote the new app, Fanatics plans to hold a raffle in the next two months, giving away $2 million worth of FanCash, which users can redeem for betting credits or merchandise.
It is noteworthy that the casino user group targeted by Fanatics shows significant differences from traditional sports betting demographics. Grant revealed that the proportion of female players in the casino is notably higher, and most are aged between 30-40 years. Accordingly, the company will adjust its product structure, initially focusing on table games and live dealers (accounting for two-thirds of the betting amount), while gradually increasing the proportion of slot games aimed at casual players.
Although Fanatics has seen market share growth in 2024, Macquarie analyst Chad Beynon noted that its performance is still slightly below expectations, far from the "top three in the industry" goal set by founder Michael Rubin. Currently, the company is close to a 10% market share target in the states it operates, but it still needs to break through on a national level.
Industry observers believe that Fanatics' real opportunity lies in attracting new users rather than competing for the existing market. With the launch of the standalone casino app, whether this company, which positions itself as a "challenger," can reshape the industry landscape will become one of the most noteworthy business cases in this year's US digital entertainment market.
