Rumor mill turning
Fanatics is reportedly interested in purchasing sports betting operator Tipico.
CNBC reported on Thursday that the leading sports merchandising company is currently in negotiations regarding an acquisition. According to sources cited by the media company, talks are continuing but the two parties are currently not aligned when it comes to the price.
the company has not yet formed any deals
Prior to the Tipico rumors, reports had linked Fanatics with the potential acquisition of a number of other sportsbook operators. These included WynnBET, Betsson, TwinSpires Racing, Rush Street Interactive, and PointsBet. However, the company has not yet formed any deals with these companies.
Fanatics making moves
Currently, Tipico has a small-scale sports betting operation in the US, only currently holding licenses in Colorado and New Jersey. However, it has a more established global presence as the number one provider of sports betting in Germany. In an effort to expand its presence in the US, Tipico entered a $100m deal last year with Gannet, the publisher of USA Today.
Rubin wants to enter the US sports betting space
The potential acquisition rumors have surfaced just one day after Fanatics executive chairman Michael Rubin announced that he was selling his 10% position in Harris Blitzer Sports Entertainment, owner of the New Jersey Devils and Philadelphia 76ers. Rubin wants to enter the US sports betting space and current NBA rules would have banned him from doing so.
Confident about prospects
Michael Rubin is confident that Fanatics can become the leader in the sports betting space within ten years. Speaking to the Sports Business Journal in February, he said: “That does seem ambitious for someone who’s not in the business today, but our strategic advantages are that we are one of the best-known digital sports brands and we touch so many fans.”
Fanatics isn’t wasting any time in gaining a foothold in betting. The Maryland Lottery and Gaming Control Commission gave it partial approval for a sports betting facility operator license. The Sports Wagering Application Review Commission will also need to give its approval before Fanatics can launch operations in Maryland. In May, Fanatics officially trademarked the BetFanatics name.
