Fanatics Sportsbook has made its full debut in four states — and now, it’s looking to challenge established sports betting leaders with a more targeted, cost-efficient strategy.

After six months of beta testing, the sports merchandising giant has formally started its online sportsbook operations in Maryland, Massachusetts, Ohio, and Tennessee. 

The initial rollout will be joined by 12 additional states — including key betting locales such as New York, New Jersey, and Pennsylvania — after its $225 million purchase of PointsBet’s U.S. operations closes later this month.

Despite the company’s apparent omnipresence among sports fans and a $31 billion company valuation, Fanatics is still an upstart against an established FanDuel-DraftKings market duopoly and will face further competition from the newly rebranded ESPN Bet.

But instead of the heavy consumer ad blitzes common to many of Fanatics’ sportsbook competitors, company officials said they will lean on their existing database of more than 95 million customers and a promotional partnership with NBC Sports inherited with the PointsBet acquisition.

Earlier this year, Fanatics Betting & Gaming CEO Matt King said the company was “not necessarily in pursuit of market share,” instead touting a broader, Fanatics-powered consumer experience. The view, however, is diametrically opposed to PENN Entertainment’s stated intent of reaching a 20% online sports betting market share in its $2 billion ESPN deal.

Physical Presence

In addition to the online presence, physical sportsbooks at or near pro sports venues will be a key element of Fanatics’ strategy.

Earlier this year, the company opened a location at the Washington Commanders’ FedEx Field, which will be followed on Friday by one at the Cleveland Guardians’ Progressive Field and one near the Columbus Blue Jackets’ Nationwide Arena later this month.

MLB commissioner Rob Manfred has big expectations for a venue in one of the league’s smallest markets.

Appearing in Kansas City to help support the Royals’ ongoing push to replace Kauffman Stadium, Manfred pointed to venues in Atlanta and Washington — two of MLB’s foremost facility success stories — as the type of broad, entertainment-district projects to emulate.

“It’s the power of baseball,” said Manfred, speaking at the MLB Urban Youth Academy in Kansas City along with Royals owner John Sherman. “Eighty-one [home] games changed what the community looks like, all for the better.”

The Royals are determining which of two potential sites — one in downtown Kansas City and another in neighboring Clay County — will house a new $2 billion ballpark district, with the final choice due in September. 

The selection will be crucial both for the city, which is MLB’s third-smallest market, and the team, which ranks 25th in team payroll. “For a market of this size, those [development] opportunities are critical in today’s game in order to put the ballclub in position to be competitive over the long haul,” Manfred said.

Blueprints For Success

The Braves, now one of the league’s top-performing teams both on and off the field, set a new Truist Park record on Tuesday with their 43rd sellout of the season. In Washington, Nationals Park dramatically revitalized the Navy Yard area, where the stadium is located.

Sherman said the proposed stadium development “will be the most important decision that we would make while we have the privilege of stewarding this franchise.”

Conference realignment in college sports is at an impasse, as schools with the most at stake have very different visions for the future.

Oregon State appears intent on keeping the remaining four Pac-12 schools together. Rebuilding the conference is something the Beavers’ athletic director Scott Barnes says he wants to start happening within “days.”

But key to that scenario is commitments from California and Stanford — both of which could have potentially already bolted for the ACC if not for opposition from the conference’s top schools.

A Stanford move has even reportedly gotten backing from former U.S. Secretary of State Condoleezza Rice, a longtime university professor and key supporter. Rice has reached out to the ACC to vie for Stanford’s entry, according to Yahoo Sports. And former President George W. Bush has done the same for Southern Methodist University, where his wife went to school.

Records and Reactions

The shifting college landscape is having impacts beyond conference makeup, too. 

Colorado received a record $28 million in athletics donations in its most recent fiscal year. The school is entering its first season with Deion Sanders as its head football coach and will return to the Big 12 next year.

Meanwhile, Wichita State athletic director Kevin Saal is keen on being proactive. The American Athletic Conference could take on former Pac-12 schools, if interested, or see its own schools — like SMU — targeted as realignment continues. “Nobody wants to be reactive in these situations,” Saal said.