For decades, New York bettors had been forced to flock to neighboring New Jersey to take part in sports betting. Now that sports betting has been legal in New York for a year plus, the state has easily become the mecca of sports gambling in the country even outrivalling more mature gambling markets such as New Jersey and Pennsylvania.
And now, the brand-new Fanatics sportsbook wants a piece of this action. Just before 2022 concluded, Manhattan realty company SL Green, Caesars Entertainment, and Jay-Z’s Roc Nation teamed up and placed a bid for a Times Square casino license.
This partnership is anticipated to lead to the construction of a state-of-the-art casino, which will be located at 1515 Broadway. 1515 Broadway is the same building in New York that houses the Lion King Musical. The casino proposal is expected to turn Times Square into a gambling destination while taking advantage of the sports betting boom that’s being experienced in the country.
The casino proposal which was detailed in October 2022 has attracted a lot of attention from both supporters and opposers. For instance, the Broadway League, which is the trade organization that represents the owners and producers on Broadway, was quick to oppose the construction of a new casino at 1515 Broadway.
The Broadway League allege that a new casino would disrupt their business on Broadway, which has still been struggling to find its feet after being disrupted by the pandemic. But Caesars Palace, Roc Nation, and SL Green disagree. According to the coalition, if approved, Caesars Palace Times Square is expected to generate at least 7 million new visits to the district each year.
A new casino at the heart of Time Square would also help to boost local businesses including the theatre industry that the Broadway League is a part of. In addition, the Caesars Palace Times Square asserts that a new casino in Times Square will also include a membership award plan that would allow customers of the casino to earn credits to various Broadway shows, local restaurants, and other attractions in New York.
Jay-Z already has strong connections in the sports betting industry thanks to his affiliation with the sports betting brand Fanatics. Last year in August, Jay-Z teamed up with Micheal Rubin’s Fanatics to place a bid with the New York State Gaming Commission for a mobile sports betting license in the state.
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Fanatics and Jay-Z are a match made in heaven
Fanatics is already one of the most recognized retailers of sports memorabilia in the country. As you can expect, sports fans all over are already familiar with the brand, which should make it relatively straightforward for Fanatics to establish itself in the already crowded gambling space. Fanatics Inc was founded in 1995 by Alan and Mitchell Trager.
The company originally retailed sports merchandise in brick-and-mortar shops before moving operations online. It wasn’t until 2011 that Micheal Rubin and GSI Commerce purchased Fanatics for approximately $171 million in cash and $106 million in common stock.
A year after its purchase, Rubin acquired Fanatics fully for $2.4 billion. Since Rubin took over the operations of Fanatics, the brand has since expanded into trading cards. Today, Fanatics has exclusive partnerships with some of the biggest sports leagues in the country including NFLPA, NBPA, MLBPA, MLB, as well as the NBA. Fanatics also owns a well-known NFT company known as Candy Digital.
Apart from growing into one of the largest retailers of sports memorabilia and merchandise, Fanatics also has strategic partnerships with some of the most popular sports leagues including the NFL. Fanatics also added the Topps Trading Cards Company to its portfolio, which signals the strength of its brand.
In August 2021, Jay-Z and the co-owner of the Philadelphia 76ers Michael Rubin announced that they would be applying for a New York gaming license to create Fanatics Sportsbook. As part of this new exciting venture, Rubin also announced that he would bring in revered hip-hop artist Jay-Z as the Vice Chair.
Today, Fanatics has plans to become the largest sportsbook in the country. The Fanatics Sportsbook is expected to debut in several major legal jurisdictions. Fanatics already boasts a highly coveted mobile sports betting license in New York thanks to the strategic partnership it made with Penn National in 2021.
The business also has several more licenses in some of the most profitable gambling markets. Not too long ago, the brand announced that it had successfully secured access into Massachusetts and Ohio. Fanatics also has a retail sports betting license in Maryland. Fanatics hopes to be in as many as 20 jurisdictions before the beginning of this year’s NFL Season, which begins in September.
Perfect time to launch a new sportsbook in New York
In its first year of legal sports betting, the Empire State generated a striking $909 million worth of revenue. According to Governor Kathy Hochul, mobile betting garnered $709 million in taxes, as well as an extra $200 million from licensing fees. The cash generated from taxes and licensing fees is generally allotted to projects such as youth sports, education projects, as well as gambling addiction treatment and prevention.
According to the American Gambling Association, punters in New York bet $16.2 billion in 2022, which surpassed the $10.9 billion that was generated by New Jersey in 2021. New York’s impressive performance hasn’t been a surprise. Not only has New York’s massive population been a huge advantage for the market, but the space is also quite competitive.
When the market was first legalized last year, the New York State Gaming Commission approved 10-year licenses for 9 sportsbooks including BetMGM, FanDuel, Genting, DraftKings, Rush Street Interactive, Bally’s, PointsBet, Wynn Interactive, as well as Caesars Sportsbook.
Final Thoughts
It has only been one year since mobile sports betting was legalized in New York and the Empire State has already successfully established itself as the biggest gambling market, outside of Nevada, in the country. Since sports betting was legalized by the Supreme Court in 2018, 36 states in total have legalized the practice with more states expected to legalize sports betting in 2023.
