When Will Fanatics And Betr Enter The NY Sports Betting Market?

Two emerging brands in sports betting have captured headlines in recent months, thanks to trial runs in select states. But, Fanatics Sportsbook and Betr Sportsbook are not yet licensed in New York.

What does that mean, and when might we see them as NY sports betting operators?

Fanatics Sportsbook may launch soon

Fanatics Sportsbook is currently beta testing its product in Massachusetts, Ohio, Tennessee and Maryland. The sports betting app from the well-known Fanatics brand, which is known mostly for sales of licensed sports apparel, has been received well in those states.

Fanatics signaled its intent to disrupt the industry by purchasing PointsBet’s U.S. business earlier this year. But, Fanatics has yet to go toe-to-toe with the industry leaders. Earlier this year, CEO Michael Rubin lowered his expectations, saying he hoped to have online sportsbooks in 12-15 states (down from 15-20 in October of 2022).

The purchase of PointsBet NY by Fanatics may have given that aspiring operator a foot in the door. Fanatics had hoped for a smooth license transfer following the approval of that sale. At a New York State Gaming Commission meeting Thursday, officials said such a process may be completed as soon as next month.

Fanatics does have the resources to take on FanDuel and DraftKings, which account for more than 60% of the total handle in New York. The Fanatics customer database, made up of consumers from its retail business, is reportedly significant. If the company can leverage that base, while offering an alternative (perhaps through innovative new sports betting products), it could slice into the block of market share held by DraftKings NY and FanDuel NY.

Betr may be pivoting to DFS

Betr, a micro-betting platform founded by Jake Paul and Joey Levy, is operating in Massachusetts and Ohio. In the former state, Betr has garnered less than one percent of the market share, signified by $289,000 in wagers accepted in June. Thus far, even Paul’s fame and controversial persona have not helped Betr break through in the sportsbook business.

The company has promised future sportsbook launches. However, its late-July launch was not its sportsbook, but a new daily fantasy sports platform that went live in 24 states. New York was not one of them.

With an emphasis on live-betting and the micro-betting model, Betr offers a clear differentiator in the marketplace. But whether that will be enough to carve out an eventual niche spot in New York remains to be seen.

Betr and Fanatics need New York sports betting licenses

The New York sports betting market is big business, and it commands steep license fees and tax rates. Operators must fork over $25 million for a 10-year license, and are subject to a 51% tax rate on revenue.

Betr is nowhere near as far along in the process as Fanatics. The former operator must start from scratch with its own license application should it choose to pursue business in the Empire State.

Total wagers accepted from sports betting in New York frequently surpass $1 billion each month, a staggering figure that dwarfs other states. In June, New York topped $25 billion in total handle all-time, becoming the quickest state to reach that level. In June 2023, the eight New York online sportsbooks reported $1.16 billion in total handle.

Since the state launched online sportsbooks in Jan. of 2022, $1.1 billion has been paid in the form of taxes from sports betting revenue. That makes New York one of only three states to reach the $1 billion tax mark, joining Nevada and New Jersey, both of which have had legal sports betting for many years.

On the plus side…

If Betr and Fanatics embark on the steps to become licensed in New York, it may not take long for their sportsbooks to become available. Because both have beta tested their platforms elsewhere, customers may be able to access them mere months after license approval.

New York gaming law allows for retail and online sportsbooks. Currently, there are nine licensed operators for online sports betting. One of them, Bally Bet, is currently unavailable while it transitions to a new technology platform.

The others, led by FanDuel and DraftKings, as well as BetMGM NY and Caesars NY, are operating in the largest and fastest-growing sports betting market the United States has ever seen. It’s one that, despite its barriers to entry, may prove too appealing for Fanatics and/or Betr to pass up.

About the Author

Dan Holmes

Dan Holmes is a writer for NY Sports Day. He has also written three books about sports. He previously worked for the National Baseball Hall of Fame and Major League Baseball. He enjoys writing, running, and lemon bars. He lives near Lake Michigan with his daughters and usually has an orange cream soda nearby.

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