As Fanatics considers increasing its marketing spend from $350 million to as much as $1 billion in 2027, CEO Michael Rubin is unsurprisingly bullish on sports betting.
- Rubin said he expects the next few years to be difficult because of prediction markets.
- Fanatics has approached a 10% market share just over three years after launching its sportsbook.
- Rubin highlighted Kalshi, Polymarket, FanDuel, and DraftKings as Fanatics’ top competitors.
Fanatics, formerly a sports merchandise company, dove into sports betting in January 2023 by launching the first in-stadium sportsbook in the NFL at the Washington Commanders’ Northwest Stadium, then known as FedEx Field.
A six-month beta testing period later led to an August launch of the company’s online sportsbook app. The platform quickly gained traction with customers, partly through FanCash, a rewards currency that can be redeemed for bonus bets, merchandise, and collectibles.
As Fanatics approaches a 10% market share in U.S. sports betting just over three years after launching its online sportsbook, Rubin remains committed to expanding the business.
“I fundamentally believe in the betting game and business right now,” Rubin said on CNBC’s “Squawk Box.” “I think it’s very unpopular right now - the next couple of years are going to be very difficult with not only the betting companies, but also the prediction companies all kind of competing for the same customer - but for Fanatics, we’re the only company really building a digital sports platform.
“These businesses really work as one ecosystem for the consumer. We have 45 million members (in our loyalty program) ... the biggest loyalty program in sports.”
Fanatics Markets, the company’s prediction platform, launched in December 2025 but is not included in its sports betting market share. This trading hub is available in 22 states, none of which overlap with its sports betting jurisdictions.
Fanatics wants to be No. 1
Fanatics’ customer-focused approach has been a resounding success. Rubin said Fanatics expects to issue more than $2 billion in FanCash in 2027, with 97% to 98% expected to be redeemed within 12 months.
Fanatics’ injury protection for player props and parlays has also proved popular with customers. The company recently expanded the feature to cover injuries sustained at any point in a game, rather than only in the first half.
But despite the positive response to its offerings, Fanatics expects the next few years to be challenging.
“The profits (of our) businesses allow us to be more aggressive and invest more in the betting and gaming business because we believe in it long term,” Rubin said. “That doesn’t mean we’re not aware the next couple of years will be very hard with this thing … prediction markets. What happens to betting and gaming?”
Regardless, Fanatics remains firmly committed to increasing its sports betting market share. That’s despite the longstanding dominance of FanDuel and DraftKings, which hold 75%-80% of the national market share.
“For Fanatics, we believe we need to be No. 1 in whatever we do. … We’re a distant No. 3 in the betting and gaming business. We don’t like that,” Rubin said. “I think it’s super competitive.”
Rubin identified FanDuel, DraftKings, Kalshi, Polymarket, and Fanatics as the five major companies competing for the same customers. He acknowledged BetMGM and bet365 as other competitors who could still attract users.
