$1M: Fanatics Plans Massive Ad Push to Challenge Competitors

Fanatics is stepping up its game against the biggest names in US sports betting, with chief executive officer Michael Rubin saying he wants the company to eventually become the market leader. Challenges Only Strengthened Their Plans to Grow Rubin, the billionaire founder and chief executive of Fanatics, said the company’s sports gambling business has become more difficult over the past year. That has not changed his ambitions for the division, which is competing with established operators including DraftKings and FanDuel. Fanatics, which became the NFL’s official sportsbook partner in August, has expanded rapidly across sports and betting, using its existing relationships with teams, leagues and sports fans as it builds out the business. Rubin sees that broader sports presence as an advantage as the company tries to attract more customers to its sportsbook. $1 Billion in Ads Next Year Fanatics is, therefore, getting ready to significantly increase its spending on sports betting advertising. Rubin told Bloomberg that the company could spend as much as $1 billion advertising its sportsbook in 2027. That would be nearly three times the roughly $350 million the company expects to spend this year. The spending plan reflects Rubin’s ambitions for Fanatics Betting and Gaming, which launched online sports wagering in 2023 and has expanded to 19 states. According to Rubin, Fanatics could generate about $14 billion in total sales this year, with roughly $2 billion coming from its betting and gaming operations. He also estimates that Fanatics currently holds about 10% of the US sports betting market. Is Increased Ad Spending a Guarantee? The company has been building its position through a combination of sports partnerships and its existing relationship with millions of fans. As mentioned earlier, Fanatics recently became an official sportsbook partner of the NFL, joining DraftKings and FanDuel as league partners. That gives Fanatics another way to put its brand in front of one of the largest audiences in American sports. The company also has an advantage that its two biggest competitors do not: a large sports merchandise and collectibles business that already has relationships with fans. However, spending more on advertising does not guarantee that Fanatics will close the gap, considering that DraftKings and FanDuel have spent years building their brands and customer bases, while other operators invested heavily in promotions and advertising but failed to break their hold on the market. Fanatics’ planned increase would also come as the US sports betting industry becomes more competitive. Operators are paying close attention to customer acquisition costs, retention, and profitability rather than simply spending to attract new bettors. For Fanatics, the question will be whether its broader sports business can turn that existing audience into sportsbook customers. If the company follows through with a $1 billion advertising budget in 2027, consumers can expect to see substantially more Fanatics branding across sports broadcasts and other major media platforms. The company is not currently available in every legal betting market. In Oregon, for example, the Oregon Lottery operates the state’s only legal mobile sportsbook, powered by DraftKings.