It’s been about three months since Fanatics Sportsbook launched in Indiana.
Its parent company, Fanatics, which sells sports merchandise, entered the sports betting industry when it acquired the US interests of PointsBet last year.
So, how has Fanatics fared so far compared to PointsBet in the Indiana sports betting market?
Fanatics bought PointsBet’s US operations for $225 million
Last month, Fanatics launched the final stage of its PointsBet acquisition in Illinois. Fanatics began its operations in Indiana at the end of February. The sportsbook is now operating in 20 US states.
It purchased PointsBet’s US sportsbook operations last June for $225 million. However, DraftKings offered $195 million, so it had to raise its original $150 million offer.
Matt King, Fanatics CEO of betting and gaming, said the move to acquire PointsBet did wonders for the company’s growth plans.
“The acquisition of the US business of PointsBet has super-charged our expansion plans.”
Fanatics sees gains in total handle and adjusted revenue
Comparing February through April, Fanatics handled more wagers than PointsBet during the same months last year.
In February 2023, PointsBet took in roughly $5.7 million in wagers, which resulted in $456,727 in adjusted gross revenue. Last February, Fanatics took in about $6.5 million in total handle, collecting $557,209 AGR.
Fanatics then saw an uptick in betting due to March Madness. It nearly doubled its handle to $12.5 million in March, collecting $759,438 AGR. In March of last year, PointsBet took in $9.1 million in handle. It actually realized more adjusted revenue than Fanatics with $786,551 AGR despite a lower handle.
In April 2023, PointsBet’s handle dipped to $7.06 million, profiting $417,856. Last month, Fanatics handled $9.05 million worth of bets, with $1.05 million AGR.
Fanatics handled around $28.1 million in bets during the three-month span and collected about $2.4 million from those bets. PointsBet took in around $21.9 million in total handle and realized about $1.7 million AGR.
So, not only was more money wagered through Fanatics (+$6.2 million) in the three months compared to PointsBet, Fanatics collected more revenue (+$700,000) as well.
Keep an eye on Fanatics Sportsbook going forward
All eyes are on Fanatics as it begins its quest to become a top-tier sportsbook in the US. The company as a whole is valued at $31 billion. If any operator can eventually take on sportsbook titans FanDuel and DraftKings, it certainly could be Fanatics Sportsbook.
If betting in Indiana is any indication of future success, the company should be buoyed that it has been able to surpass PointsBet’s numbers in the first three months of operation.
It should not be forgotten that Indiana has a very competitive sports betting market, with 12 online operators and a 13th on the way. Last month, residents wagered $394 million on sports, which was up 20% year over year.
While Fanatics has a long way to go to catch FanDuel ($15.3 million AGR in April) or DraftKings ($12.6 million April AGR) in Indiana, it must be more than satisfied with its solid start.
