Every betting and gambling site, be it an online bookie in Canada or a PayID online pokies in Australia, in order to succeed, needs a carefully thought-out strategy. And an American digital sports platform, Fanatics, knows this well. We will cover the Fanatics strategy In Michigan and other states as sportsbetting is taking off.
After coming to the gambling market, Fanatics has been on the lookout for established and professional sports betting leaders with a cost-effective and more targeted strategy. The result was the appointment of Matt King as a new CEO in 2021.
Matthew King, who was known as the leading power behind the New York-headquartered online betting and fantasy sports company FanDuel, stated that his second-wave entry should not necessarily compete with other giants in the industry. Instead of concentrating on grabbing a bigger market share, he believes that the road to success is focusing on consumer needs.
In this aspect, Fanatics comes with two core advantages: an all-important customer database and massive piles of cash to spend on promotions and marketing. Moreover, the company also announced another round of venture capital that puts Fanatics market valuation at $31 billion – this time $700 million led by Clearlake Capital, a private equity firm Clearlake Capital. And as Reuters reported, the company sits on $2 bn in cash.
However, the database is seen as a not-so-secret power. Fanatics is known for selling branded collectibles and merchandise across the globe. In addition, it knows well what specific teams and sports interest their consumers based on their purchase history. This information can be quite valuable in creating personalized sportsbook offerings to potential customers.
The Overview of Fanatics – Key Facts You Should Know
Fanatics, owned by Rubin, is quite a popular sports betting platform that has made its full debut in four states: Ohio, Maryland, Tennessee, and Massachusetts. Not long after its establishment in 2021, the company expanded its borders and is now available in five more states as well. These cover Colorado, West Virginia, Kentucky, Virginia, and Connecticut. Recently, Fanatics was valued at $12.8 billion.
The brand will operate these states as “PointsBet, a Fanatics Experience,” which in the near future will add more U.S. states under its roof and bring the overall number of states to 11. Michigan, Pennsylvania, and New York are the most awaited ones.
Fanatics, with over 95 million users globally, focuses mainly on cross-selling to retail, with a customized sports betting experience and reward credits, FanCash. Every time a customer makes an eligible purchase on the platform, they will receive FanCash. The only exceptions where account holders won’t get these credits are gift card purchases or cancelled and returned orders. As for the earned FanCash, it later will be applied as a discount on the next purchase.
Physical Presence
The key aspect of Fanatics Strategy is having physical sportsbooks in addition to online bookies. These on-premise establishments are typically located near or at pro sports venues.
At the beginning of 2023, the company opened a location at FedEx Field of the Washington Commanders. The next venues will be near the Columbus Blue Jackets Nationwide Arena and at the Cleveland Guardians’ Progressive Field.
Investment in Sports Betting Arm
Fanatics plans to invest almost $1 billion in its sports betting arm. As King said, their biggest investment will be in product and engineering. However, according to him, there will also be a fair percentage of investment going back into the ecosystem. And they will spend this money on users through various rewards instead of on big, classic ad campaigns.
According to the Wall Street Journal, Rubin believes the business’s betting arm is profitable and will bring the highest revenues by 2025 or 2026. Matt King adds that is an attainable desire, while he sees Fanatics eventually entering into international business “sooner rather than later.”
Let’s Talk About Integration of PointsBet App
The $150 million acquisition of PointsBet gave Fanatics a direct path into several major markets, covering New Jersey and Pennsylvania. Founded in 2017, PointsBet is an Australia-based betting platform with over 1,000 betting markets.
In addition, Fanatics had recently applied for a sports betting license in New York. And even though there is still no news on this aspect, PointsBet’s presence in New York now has a lane into one of the dominant markets.
Overall, PointsBet is operational in Illinois, West Virginia, Colorado, Pennsylvania, Michigan, Louisiana, Kansas, Iowa, Virginia, New York, Michigan, Ohio, Indiana, and Maryland.
As Matt King notes, the company’s strategy to integrate the PointsBet app into the Fanatics ecosystem has the primary goal of simplifying user experience. People can easily access the platform through a compact mobile app and start betting wherever and whenever they want.
In addition, there is a partnership with NBC Sports of NBCUniversal and the trading specialists Banach Technology.
What About Expansion Through M&A
The mobile is the next, not less important, driving force behind the Fanatics expansion. The company utilizes Amelco’s source code to have native iterations for Android and iOS. This makes the applications more convenient and responsive. Precisely, it enables Fanatics to modify the platform for its own needs.
The Fanatics Sportsbook app is currently live in Tennessee and Ohio for existing consumers with an access code.
According to Matt, the initial testing of the Amelco source code was really good, but there is still room for improvement. For example, the Fanatics Sportsbook doesn’t feature tennis yet.
Why Fanatics Can Become Top Sportsbook
When LSR asked Matt King about the proclamation of Rubin, he mentioned Fanatics’ goal of being a one-stop shop for sports enthusiasts, featuring merchandise, collectibles, tickets, NFT, sports betting, and live streams.
Final Thoughts on Fanatics Strategy In Michigan
King said they believe in their long-term strategy and have a beneficial customer-acquisition model even today. According to him, the best rewards programs and the best products will ultimately win. And when they succeed in delivering these two elements unified with their acquisition model, Fanatics can be No. 1 in 10 years.
