Sports merchandising giant, Fanatics, expands into the world of sports betting
Fanatics Sportsbook, a growing competitor in the U.S. sports betting market, has announced its entry into Connecticut, joining FanDuel and DraftKings as the only three entities with betting apps authorized to operate in the state. This move marks a significant step for Fanatics as it continues to expand its market presence.
Although Fanatics currently holds a relatively small share of the U.S. sports betting market, it has been steadily growing and is often ranked third or in the second tier of operators behind leaders FanDuel and DraftKings. In Massachusetts, for instance, Fanatics surpassed BetMGM to rank third in monthly betting revenue with about $3.1 million in April 2025, trailing FanDuel ($17.9 million) and DraftKings ($37.8 million).
Despite this, sports betting remains a smaller but expanding segment for Fanatics, with betting revenue making up less than 4% of its overall corporate revenue in 2024. The company's online casino product, which is now available to West Virginians, is part of its strategy to diversify and grow its offerings.
Fanatics had a soft launch this week in partnership with the Connecticut Lottery Corporation. As it enters the Connecticut market, Fanatics aims to improve upon the 15% share of the market previously attained by Rush Street's PlaySugarHouse sportsbook.
Meanwhile, other developments in the sports betting industry include Massachusetts posting a record $654 million sports wagering handle for November, and the North Carolina Lottery approving a set of sports betting rules.
Elsewhere, DraftKings is facing a lawsuit over a Massachusetts sports betting promotional offer, with the Public Health Advocacy Institute alleging that the offer was not clear enough in explaining the requirements for a $1,000 sign-up bonus.
In addition, Major League Baseball has partnered with EPIC Global Solutions and the Entain Foundation to educate minor league players about how to avoid gambling-related harm. The partnership will feature lived-experience educational sessions with EPIC facilitators like former pro baseball player Ryan Tatusko, who struggled with gambling addiction.
Fanatics also plans to enter Vermont's sports betting market on January 11, partnering with the same three operators that were awarded contracts by the Vermont Department of Liquor and Lottery.
As the sports betting industry continues to evolve, regulatory proposals and legal challenges are also emerging. For example, Fanatics has raised concerns about a regulatory proposal in Ohio regarding how sportsbooks can tie non-gambling consumer transactions to betting bonuses.
The Florida Supreme Court is currently considering whether to accept a case regarding the Florida Seminole Tribe's gambling compact with the state, and West Flagler, the parimutuels that are suing Gov. Ron DeSantis over Florida sports betting, has filed a motion asking to be allowed up to 7,500 words in its rebuttal to DeSantis' response in the case pending with the state's Supreme Court.
Lastly, ESPN BET's first month performance is in line with analysts' estimates, according to preliminary data, and Hard Rock Bet Florida could potentially surpass all of New York in monthly handle.
As Fanatics enters the Connecticut market, the competition is set to heat up in the already crowded U.S. sports betting landscape.
In Connecticut, Fanatics Sportsbook has launched its sports-betting app, aiming to surpass the 15% market share once held by Rush Street's PlaySugarHouse. Meanwhile, DraftKings faces a lawsuit over a promotional offer in Massachusetts, alleging inconsistent explanation of requirements for a $1,000 sign-up bonus.
Furthermore, Fanatics, though unequally raking in gambling revenue compared to leaders FanDuel and DraftKings, has entered Vermont's sports-betting market on January 11. The industry's growth is evident, as Massachusetts posted a record $654 million sports wagering handle for November.
Regulatory proposals and legal challenges are also emerging in the sports-betting industry, with Fanatics voicing concerns about a proposed regulation in Ohio on tying non-gambling transactions to betting bonuses. The Florida Supreme Court is currently reviewing a case regarding the Florida Seminole Tribe's gambling compact with the state.
As the sports-betting landscape evolves, the competition will surely heat up, with ESPN BET's first-month performance meeting analysts' expectations and Hard Rock Bet Florida potentially surpassing all of New York in monthly handle.
