Fanatics chief executive officer Michael Rubin believes the sports commerce and gaming group could reach $50 billion in annual revenue within 5-to-10 years.
He has also confirmed further expansion into financial services and prediction markets, according to Forbes.
Key Takeaways
- CEO Michael Rubin predicts up to $50 billion in yearly revenue within the next 10 years.
- Expansion includes sports betting, prediction markets, and financial products.
- Fanatics also plans to launch a multipurpose credit card for sports fans.
Speaking at the National Retail Federation’s Big Show in New York on Sunday, Rubin said there is no immediate pressure to take the privately held company public despite its current valuation of around $13 billion.
Its largest revenue contributor remains licensed merchandise, which generates around $7 billion in annual revenue. Collectibles and trading cards add $4 billion, while betting and gaming account for roughly $2 billion. The company also operates official online stores for many major sports leagues and U.S. colleges, owns the Lids retail chain, and partners with Barnes & Noble on campuses.
While Fanatics holds a strong position in the U.S. market, international operations remain relatively small, generating about $1 billion in revenue. Rubin said global expansion represents a key opportunity, indicated by the launch of a trading card store in London last year.
The group has also invested heavily in online sports betting, competing with established operators such as DraftKings and FanDuel. However, its $2 billion sports betting operation has been loss-making so far.
Rubin also revealed Fanatics is preparing to launch a branded credit card later this spring. The card will be aimed at sports fans and integrated across its betting, merchandise, and ticketing offerings. Rubin said the company believes the product could develop into another billion-dollar revenue stream, adding to its existing portfolio of businesses.
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Fanatics departs AGA over prediction market disagreements
Fanatics' portfolio has extended to include a stake in the fast-growing prediction markets sector with the launch of Fanatics Markets, a standalone product offering sports-related contracts in 24 U.S. states. Delivered through a partnership with Crypto.com, the launch followed Fanatics’ acquisition of Commodity Futures Trading Commission-licensed Paragon Global Markets.
That launch has led to a significant industry shift for Fanatics, which has since withdrawn from the American Gaming Association (AGA). The withdrawal is reportedly over its status as a provider of prediction markets.
It follows the earlier exits of FanDuel and DraftKings from the AGA, which has been outspoken in opposing the prediction market model. This rift between three major operators and a major industry organization represents another fault line in the upheaval caused by prediction markets alongside legal disputes in multiple states.
