Until the voters decide in the upcoming election in California, it seems like the sportsbook operators and the tribes will never be able to resolve their dispute due to the money involved.
If the sportsbook operator initiative wins, the rules and regulations may forbid newer sports betting companies from entering the Golden State during the early stages of the potential launch.
Fanatics is Looking to Enter the Sports Betting Space
When it comes to sports apparel, Fanatics has a great reputation. CEO Michael Rubin has decided to venture into the sports betting industry because the space continues to grow exponentially.
However, getting into sports betting, especially in specific markets, will not be an easy task. New sportsbook platforms will also have to compete with reputable sportsbooks that have not only gained market access in numerous jurisdictions but also strong market share percentages in those states.
The sports betting company failed to secure a bid to enter the competitive New York mobile sports betting market. After failing to secure a license, the company looked for other alternatives. Wynn Resort was rumored to sell its betting interactive unit, but that also didn’t come to fruition.
The California sports betting measure is backed by six bookmakers and Fanatics. These six reputable sportsbook companies include Bally’s, BetMGM, DraftKings, FanDuel, Barstool, and
What Could be the Issues For Fanatics?
If Fanatics gets the opportunity to enter other jurisdictions down the line, the company will have to dedicate its efforts to market the platform to gain market access in numerous states. The company has already acquired a copy of the platform source code from B2B supplier Amelco.
Amelco specializes in player account management and a platform engine. It will take care of the operational side of things as the sportsbook’s operations team continues to grow over the next few years.
The initiative that the sportsbooks are pushing in California only benefits the sportsbooks that have market access to many jurisdictions in the industry. Potential license bidders must be licensed in 10 states or operating in five states, as well as running 12 casinos.
On paper, it seems that Fanatics is the only company that doesn’t have a clear path in the Golden State’s lucrative market. Fanatics don’t even have any of the credentials needed if the initiative succeeds, but the renowned apparel company has contributed $12.5 million to the campaign.
Does Fanatics Have Time to Enter California’s Market?
There is no indication as to which side will ultimately control the sports betting market as the market could launch towards the end of 2023. If the sportsbook operators come out victorious, Fanatics could potentially have 18 months to sort all of this out.
The company has been trying to gain market access across several states, but it has been a difficult process due to the competition. Fanatics could also try to partner with another reputable sportsbook or acquire a sportsbook that is looking to leave the space.
Fanatics’ management needs to come up with a plan because California’s sports betting market will be very lucrative as estimates fluctuate between $3 to $5 billion in revenue.