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Fanatics looking to expand betting business with BetParx deal

Fanatics gambling news

Fanatics is making plans to acquire the BetParx sportsbook brand in a bid to broaden the sports merchandise company’s footprint in the US betting industry. Although both parties have reportedly signed a letter of intent, a deal price for the acquisition is yet to be reached.

Greenwood Gaming & Entertainment launched the BetParx app last year. The company also controls online gambling software supplier Playtech. Besides its Pennsylvanian subsidiary, Greenwood also has BetParx divisions in Ohio, New Jersey, Ohio, Michigan, and Maryland.

Fanatics’ chief executive officer, Michael Rubin, stated last October that he hoped to see at least 15 states with Fanatics’ sports betting offerings by the next NFL season. The parent company of Fanatics Betting and Gaming (FBG), Fanatics Holdings, reaffirmed the comment during the meeting of the Massachusetts Gaming Commission (MGC) held at the start of this month.

The company said it intended for its betting business to kick off in several states in the first business quarter of 2023 and listed Maryland and Ohio as the first states besides Massachusetts it would launch in.

Fanatics has already set up deals to operate Fanatics Sportsbook in FedExField, Maryland. The venue, home to the Washington Commanders, recently became the first in the NFL to offer a sportsbook.

The company also revealed last week that it had acquired a Category 3 license to offer sports betting in Massachusetts via its agreement with Penn Entertainment’s Plainridge Park Casino.

In private markets, Fanatic is currently valued at $31 billion after raising $700 million in capital in late 2022. The money will reportedly be used for potential acquisitions and mergers across betting and gaming businesses.

Fanatic’s acquisition of BetParx would usher the company into an already crowded marketplace. A number of major betting operators have established a foothold in the ever-expanding US sports betting industry, including Caesars, DraftKings, FanDuel, and BetMGM. Due to the rapidity of the market’s growth since the US Supreme Court’s landmark PASPA ruling in 2018, smaller players such as MaximBet have faced issues, some even going as far as ceasing operations.

Fanatics have tried entering the sports betting space for quite some time. German sportsbook company Tipico was notably in discussions with the company in June last year, but a deal was not reached. Fanatics was in several other sportsbook acquisition discussions prior to that with companies like Rush Street Interactive, PointsBet, Churchill Downs, Betsson, WynnBet, and TwinSpires, among others. There were also reports of Fanatic considering a bid for Kambi Group last year.

If Fanatics enters the still-budding US sports wagering industry, the company could likely alter the landscape for operators and investors alike. According to analysts, it could lead to a new round of promotional spending and threaten the profits of established players in the market.

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