- Fanatics failed in its bid for a New York state betting license.
- A license was given to a company - PointsBet - that Fanatics had refused to buy previously.
- Fanatics closed on a purchase of sports trading card manufacturer Topps.
NEW YORK - Fanatics has built itself into an empire in the world of sports merchandise, but it has been unable to make its way into the sports betting world.
The company has not been licensed to operate a sportsbook in any state, despite confidence that they would be able to receive such a license for New York sports betting.
The New York Post reported that insiders told them that Fanatics owner Michael Rubin’s reputation had taken a hit due to the debacle, and that prior to losing out on a license, Fanatics had been confident that they would win.
Much of this confidence came from a partnership with Barstool Sportsbook and Jay-Z, a combination that execs believed would appeal to the New York decisionmakers.
The bid was eliminated only days after a fresh round of sexual misconduct allegations against Barstool head Dave Portnoy, although the gaming commission denies that these allegations were a factor in the failed bid.
Indeed, a company that Rubin had previously refused to buy - Australian bookmaker PointsBet - was able to land one of those coveted New York licenses, while Fanatics was left out in the cold.
The Post also reported that, per their sources, Fanatics is set to attempt a sportsbook launch later in 2022.
“We believe this is a meaningful long-term opportunity but we are going to be patient to build it the right way over the years,” Rubin said toThe New York Post.
Fanatics Purchases Topps
Fanatics was able to lock up one business deal in their favor recently - the $500 million purchase of Topps, one of the major trading card companies in the industry.
The purchase seems like an undeniable win for the company in a time where it could really use one.
Still, much of Fanatics’ future could hinge on their prospective future in online gambling, which has not been revealed as of yet.
The New York debacle was clearly a setback, but time will tell what the future holds for Fanatics.