Fanatics, a giant in sports apparel, has reportedly begun discussions to buy the BetParx casino. This is as Fanatics seeks to increase its gaming presence.
CNBC reported that Fanatics signed a letter stating their intent to purchase the sportsbook. However, no agreement has been reached. The price of the deal has not been disclosed.
Fanatics has been announcing its intent to enter the US market for sports betting since long.
The business filed last year a trademark with US Patent and Trademark Office to create a “downloadable application” for betting and gaming called BetFanatics.
The company also announced last year the creation of a gaming and betting arm and made a number of major hires within this division.
BetParx is powered and operated by Playtech. It is currently licensed in five states: Ohio, New Jersey and Maryland.
Gideon Bierer is the managing partner of Partis Solutions, an advisory and corporate consulting service. He believes sports betting will give Fanatics a competitive edge in market entry.
Bierer says Fanatics has made aggressive market entry plans. It is a large company, with ambitious goals and substantial resources. Sports betting will help it move the needle.
Michael Rubin, CEO of Fanatics, stated that Fanatics’ sports gambling venture would be launched in 15-20 states by September 2023.
Although the company has obtained market access agreements in several states, it has not done so in Michigan. There, the licensing authority limits the number of licensees to 15.
Bierer believes Fanatics would benefit from a move into Michigan, given the company’s acquisition plans.
Bierer stated that Michigan, as one of three multi-vertical US states with scaled multi-vertical economies, is a must for operators who have Tier 1 ambitions. “All of Michigan’s online licenses have been used by local and national operators. Market access to Michigan can only be achieved through acquisition, or if one of the 15 operators decides to leave the market.
“We have seen some operators leave sportsbooks, but igaming accounts for 80% of the Michigan online gaming market. It generates an incredible $1.5 billion in gross gaming revenue (GGR) annually, so it is not surprising that the operators are reluctant to move. Fanatics sees acquisition as a natural route.
Bierer believes that the second element of the deal will be BetParx’s integrated capabilities. Fanatics may find BetParx’s technology stack valuable, as it is provided by Playtech.
Bierer says that the US online gambling talent war is fierce and often under-reported. Fanatics’ goal is to create a large, capable organization that can challenge the market leaders. This is extremely difficult considering the lack of industry-specific talent and immigration challenges.
“Given Fanatics ambitions and deadlines, it would make sense to acquire capability.”
Fanatics is not the only one who has been reported as being in negotiations to buy a US-facing casino. The retailer was said to be in discussions to buy Tipico, a German operator, in June 2022.
Both companies refused to comment on rumors, and there was never a public agreement.
This news comes shortly after Fanatics announced that they will use Amelco’s source codes from London to power their sport betting product. denied rumors that the company had reached a deal in April 2022.
In a meeting with Massachusetts state gambling commissioners, the business confirmed that it would be able to power its sports betting platform and player management system.
Fanatics purchased the source code and can make any changes required to meet its needs.