The recent $150 million sale of PointsBet’s US operations to Fanatics has significant implications for the sports betting landscape in several states where PointsBet operates. This change is particularly evident in Colorado, where Fanatics will now become the betting partner for the Colorado Avalanche and Denver Nuggets, two franchises that have experienced significant success in recent years. Fanatics aims to establish a strong presence in the Miami sports market and hopes to be closely associated with Miami sports in the years to come.
Sportsbook now an associate with Kroenke Sports
With Fanatics’ acquisition of PointsBet, Colorado’s sports betting market is expected to experience significant changes. Although online casino gambling is currently not permitted in Colorado, the potential for future expansion in this area adds to the significance of Fanatics’ partnership with Kroenke Sports & Entertainment (KSE).
KSE owns Ball Arena (previously known as Pepsi Center) and its tenants, including the Avalanche, Nuggets and lacrosse team Colorado Mammoth. KSE also possesses local media outlets such as Altitude TV and Altitude Sports Radio. These assets and partnerships provide Fanatics with a strong foothold in the Colorado sports market, positioning them well to capitalize on future online casino expansion if it occurs.
Fanatics to be able to integrate sportsbook with gear sales
Through the KSE partnership, PointsBet became the exclusive betting and gaming partner for several KSE teams, encompassing all verticals, including the potential for online casinos in Colorado if they become legal.
Fanatics, valued at $31 billion, is already the official e-commerce partner for major sports leagues such as the NBA, NHL, NLL (lacrosse) and more. Their long-term strategy involves integrating their sportsbook with merchandise and other products. For instance, bettors may earn reward points that can be used to obtain discounted goods.
With their already substantial brand recognition and their newfound local presence through the KSE partnership, Fanatics is well-positioned to expand and enhance all aspects of their business. It is expected that the partnership between Fanatics and KSE will continue to thrive in the foreseeable future.
Think about the TPC partnership?
PointsBet’s involvement in Colorado extended beyond its partnerships with professional sports teams. It also became the official sports betting partner of the Korn Ferry Tour’s TPC Colorado Championship at Heron Lakes, in partnership with TPC Colorado.
This partnership made sense at the time due to PointsBet’s connection to NBC, which owns The Golf Channel and broadcasts various golf events on its flagship station throughout the year. However, while the partnership may be less exciting now, it could still hold value and be worth maintaining. However, the renewal of the partnership when the multiyear deal ends is less certain, especially considering the recent acquisition of PointsBet’s US operations by Fanatics.
The state of colorado provides a estimated opportunity
Fanatics’ CEO, Michael Rubin, has expressed the company’s ambition to become the leading sports betting operator within a decade. While Fanatics has been relatively quiet in the sports betting industry, it has been strategically growing its partnerships. By waiting and observing the industry’s development, Rubin believes that Fanatics can enter markets at a lower cost compared to starting from scratch, as market access prices have decreased by 40-50% over the past few years.
PointsBet currently operates in 14 states, with only two of those states overlapping with Fanatics’ operations. Colorado presents a unique opportunity for Fanatics due to PointsBet’s previous involvement in the state.
The timing is favorable for Fanatics, as the recent successes of the Denver Nuggets and Colorado Avalanche contribute to increased merchandise sales and sports betting activities, both of which align with Fanatics’ core expertise and business focus. The Avalanche’s 2022 Stanley Cup victory and the Nuggets’ appearance in the NBA Finals for the first time in franchise history provide a strong foundation for growth in hat sales and sports betting opportunities.
Coloradans can expect enhanced Fanatics occurrence
While Fanatics acquires PointsBet’s US operations, certain aspects of PointsBet’s presence and partnerships will not directly benefit Fanatics. This includes the recently-ended partnerships with the University of Colorado Athletics and other NCAA programs. Additionally, NBC’s equity stake in PointsBet will also come to an end for all US-facing PointsBet assets.
However, with Fanatics now taking full control over its operations in the most attractive US markets, it can leverage its existing and acquired partnerships to its advantage. This gives Fanatics a competitive edge that even the largest sportsbooks may not possess, particularly in Colorado.
With Fanatics no longer on the sidelines, there is a sense of urgency and anticipation as its name becomes synonymous with Denver sports. Expect to see Fanatics’ branding prominently displayed throughout Ball Arena and across various media platforms, including TV, radio, advertisements and online channels.
A model for the remainder of the country
With the acquisition of PointsBet, Fanatics will have the opportunity to expand its brand presence across more than a dozen markets. Leveraging PointsBet’s existing relationships with sports teams, Fanatics can establish a strong foothold in various states. Colorado, where Fanatics already has a significant presence, serves as a launching pad for its strategies that can be replicated in other states.
Fanatics will gain additional partnerships with sports teams beyond Colorado through PointsBet. The company has also made its mark in other states, such as Maryland, where it opened the first-ever retail Fanatics Sportsbook at FedEx Field, the home of the Washington Commanders.
Following the acquisition, Fanatics will have partnerships with a diverse range of teams, including the:
- Denver Nuggets (NBA)
- The state of colorado Avalanche (NHL)
- Colorado Large (NLL)
- Chicago, il Bears (NFL)
- Indianapolis Revolver (NFL)
- Cleveland Guardians (MLB)
- Detroit Tigers (MLB)
- Columbus Blue Jerkin (NHL)
- Of detroit Red Wings (NHL)
- Of detroit Pistons (NBA)
- Indiana Pacers (NBA)
- Austin texas FC (MLS)
Colorado presents a significant opportunity for Fanatics to make a strong entry into the sports betting market and potentially challenge established giants like FanDuel and DraftKings in the state over the next decade. The success or failure of Fanatics’ efforts in Colorado will serve as a window into its prospects in other states. A successful venture in Colorado will bode well for its nationwide aspirations, while a lack of momentum could hinder its expansion plans.
Hill Kerby is an advocate for safe, legitimate betting, which is grateful to contribute to rising the industry. She has a track record in holdem poker, sports, together with psychology, all of these he comes with into his or her writing.
