Fanatics Casino & Sportsbook has brand power but is still considered a newcomer to the gambling market and trailing far behind the market leaders. Many other late arrivals to US sports betting have found it hard to compete and some have gone out of business, yet some industry experts think Fanatics has a winning strategy that will ultimately put it in competition with heavy-hitters like DraftKings and FanDuel.
In Michigan, the operator has been growing its market share steadily since launch, especially in the sports betting vertical.
Fanatics Sportsbook Michigan turned in a solid October, producing $29.5 million in handle. That has helped the new operator acquire 4.8% market share on a national level. It has already crossed that threshold numerous times in the Great Lakes State.
Analysts for The EKG Line and Acquire.bet co-founder Allan Stone are among the pundits who believe Fanatics is a realistic contender for the title of being the top Michigan online sportsbook over the long term. While it appears to be a tall order, Fanatics excels in certain areas that can put itself on a same playing field in a matter of time. It also doesn’t hurt that the operator’s online casino is ascending, too.
Detailing Fanatics’ growth in Michigan
It’s going to take time for any operator that is new to a specific market, let alone gambling in the first place. The platform is starting to gain national recognition within the space, partly due to its strong performance in the state.
Fanatics is nearing 5% market share nationally. In Michigan, the operator has been quietly growing, and has surpassed that mark multiple times.
In October, it achieved 5.1% market share in Michigan, edging out Caesars for the first time.
Fanatics clearly took advantage of the summer months while ceding some market share in September, given the sports calendar picking back up.
Amid the fierce competition during football season, Fanatics rebounded in October to exceed 5% in market share. November and December will be big months for the sports betting operator.
What does Fanatics do well?
Having the brand recognition of the most well-known sports merchandise company sure doesn’t hurt matters. On top of that, Fanatics has checked off key boxes in making itself a successful gambling company.
Stone said Fanatics entered the market by acquiring the right customers. He went on to add in a LinkedIn post:
“Their strategy wasn’t promo-heavy. Instead, they leaned into messaging and bonusing that emphasized their core strengths as a user-focused, experience-driven brand.
“They’ve got a clear edge in personalization and data. With a strong retail foundation, they’ve prioritized understanding user behavior better than anyone else in the space.
“Add to that their innovative approach to partnerships—structured for both immediate results and ongoing value—and it’s clear why they’ve pulled ahead.”
According to Straight To The Point newsletter on Wednesday, The EKG Line, a boutique research firm with a focus on sports betting, also believes the operator “is getting better at profiling and keeping the right customers around longer, with VIPs clearly a focus.” It also went on to say:
“Tie it all together and Fanatics—along with bet365—looks to be one of the challenger brands capable of making a dent in the U.S. duopoly.”
The EKG Line also said that Fanatics’ improved app keeps customer engaged, which puts an emphasis on acquisition, with more bonusing.
Having a strong online casino helps sports brand
Michigan is an important state more than most for Fanatics because of legal iGaming in the state. Online casinos in Michigan can assist in attracting more customers, which can toggle over to the sportsbook rather easily.
Fanatics Casino Michigan has been growing as of late, too, posting impressive monthly revenue results. In October, its gross iGaming revenue reached $6.4 million, nearly triple what its precursor brand PointsBet made over the same period last year.
With iGaming figures picking up, there’s no doubt some of those players cross over into the sportsbook and vice versa.
Fanatics is starting to become one of the stronger brands in the market. Can it compete with FanDuel and DraftKings, who have dominated both verticals for years? Only time will tell.
