Fanatics is becoming a major player in the sports betting sector

Fanatics (FANA) continues to put pressure on U.S. sports betting market share leaders DraftKings (DKNG) and FanDuel (FLUT). In the latest development, Fanatics (FANA) CEO Michael Rubin is reported to be preparing to increase advertising spending sharply. Notably, the sports merchandise and collectibles company said it now holds roughly 10% of the U.S. sports betting market. Separately, industry trackers have Fanatics (FANA) ranked fourth on a year-to-date sports betting market share basis.

New York City-based Fanatics (FANA) expects to spend about $350M advertising its gambling business this year and could lift that figure to as much as $1B in 2027. "We’re very focused on being number one in everything that we do," stated Rubin in a recent interview. The gambling division of Fanatics (FANA) projected to generate roughly $2B in revenue this year, although it is unclear if the business is profitable yet.

Fanatics (FANA) is also connecting betting more closely with its wider business. On September 2, it launched Fanatics Sports & Casino, combining sportsbook, casino, and prediction-market products in an app that adjusts availability according to customers’ locations. Betting and trading earn FanCash, which customers can spend on merchandise, tickets, and collectibles.

Investors hoping for a Fanatics (FANA) IPO may have to extend their wait well into 2027, with no signals from the company that a public debut is imminent.

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