Fanatics Betting and Gaming, the sportsbook division of the sports merchandise and collectibles enterprise owned by billionaire Michael Rubin, is intensifying its commitment to online gambling with the launch of its independent internet casino application.
Fanatics Casino began operations on Friday on iOS and Android in Michigan, New Jersey, Pennsylvania, and West Virginia, which are four of the seven states that regulate iGaming featuring online slots and interactive table games. Fanatics presently runs its online sportsbook in those areas.
To support the company's entry into iGaming, customers at Fanatics Casino can participate in a sweepstakes for a chance to win a portion of $2 million in FanCash, usable for placing bonus bets and making retail purchases. Every week until June, a fortunate winner will be awarded $25K in FanCash. To participate in the weekly sweepstakes, customers at Fanatics Casino need to wager a minimum of $10 on any casino game.
Fanatics Casino is launching through apps, but the web versions of the gaming suite will be released next week, starting with New Jersey on Monday. The launch of the Fanatics Casino will likely be extensively advertised at next month’s Fanatics Fest at the Javits Center in New York City.
Clients to Bettors
Fanatics invested hundreds of millions in its gaming operations, which surged after acquiring PointsBet US in 2023 for $225 million. The PointsBet agreement offered a rapid growth opportunity for Fanatics Sportsbook to access various online sports betting markets.
Fanatics’ share of the online sportsbook market has jumped from under 0.5% in November 2023 to over 5% by the end of 2024. Fanatics has successfully turned a significant number of its merchandise and collectibles clients into sports bettors. It’s now aiming to achieve the same with iGaming, a challenging endeavor given that DraftKings and FanDuel lead the iGaming market.
Fanatics has engaged numerous top iGaming developers for its online slot machines and table games, such as Light & Wonder, IGT PlayDigital, Evolution, and White Hat Studios.
Evolution will offer live dealers for table games on the Fanatics Casino mobile app and desktop version. Live dealers can be found for blackjack, roulette, and baccarat.
iGaming is a Major Industry
In contrast to sports betting, a low-margin gaming industry, iGaming provides operators with more substantial and dependable gaming income. Although the revenue from sports betting can vary month to month based on the results of events and matches, online casino operators are more assured that the odds are favorable for them.
Licensed iGaming operators in the seven regulated states — Connecticut, Delaware, and Rhode Island among them — earned gross gaming revenue of $8.41 billion in the previous year. Sports wagering, permitted in 39 states and Washington, DC, produced GGR of $13.71 billion.
The potential of iGaming, demonstrated by generating over half of what oddsmakers earned while being active in fewer than a quarter of states, along with its seven legal markets being among the least-populated (West Virginia — 40th, Rhode Island — 45th, Delaware — 46th), likely explains Fanatics’ investment in online casinos.
iGaming development persists in surpassing sports betting as well. In 2024, iGaming GGR surged 29% compared to the previous year, whereas sports betting revenue rose by 24%.
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