The gaming industry has been going through some major shifts and acquisitions. In 2022, we’ve seen one of the biggest acquisitions in the gambling market, that being DraftKings’ purchase of Golden Nugget.
And now, US sports goods and commerce brand Fanatics is allegedly in talks to purchase betPARX. What would this deal mean for the gambling market? Let’s first talk about the parties involved.About betPARX and Fanatics
Currently operating in Maryland, Michigan, New Jersey, Ohio, and Pennsylvania, betParx is a fully owned subsidiary of Greenwood Gaming & Entertainment. The company operates betPARX online casino in New Jersey in Pennsylvania, offering a modern experience to its players.
It is unclear if betParx online casino is being discussed as part of the transaction.
Fanatics, Inc. is a U.S.-based online producer and reseller of officially licensed apparel, sports collectibles, NFTs, trading cards, and sports memorabilia, as well as sports betting and online gaming. The company started as an American online retailer of officially-licensed sportswear and products. It now runs e-commerce sites for several collegiate and professional teams, major media companies, and professional sports leagues.
Unnamed sources told CNBC that Fanatics signed a letter of intent to purchase the betParx sportsbook, but that the price has not been set and that negotiations may not end in a deal. The reporting media noted that the sources of the material had no right to talk publicly about it and preferred anonymity.
One of the main objectives of Fanatics is to establish a foothold in the sports industry, and over the last year, the e-commerce behemoth has been looking to purchase a sportsbook brand, exploring deals with both US-based and many overseas companies, including Tipico.
Michael Rubin, the chief executive officer of Fanatics, said during the CAA World Congress of Sports in October of last year that he hopes to see the company offering sports betting in at least 15 states before the start of the upcoming NFL season.
Fanatics Holdings, the company that owns Fanatics Betting and Gaming (FBG), reiterated plans to open up shop in multiple states in the first quarter of this year during a meeting of the Massachusetts Gaming Commission (MGC). The company also stated that they plan on operating sportsbooks in Ohio, Maryland, and Massachusetts.
Fanatics debuted its first retail sportsbook in the stadium of the Washington Commanders, making it the first sportsbook inside an NFL stadium.
In a state where Fanatics has access to the market through Penn National's Plainridge Park Casino, the MGC unanimously decided to give Fanatics preliminary appropriateness for a Category 3 license.
As part of its preparations to enter the sports betting market, Fanatics also made some additions to its betting division, which is run by former FanDuel CEO Matt King. These additions include the hiring of Andrea Ellis as its chief financial officer to leverage her experience in technology, products, and operations, and the promotion of former FanDuel senior director Andrew Kleiman to vice president of Retail Operations.
Fanatics' trademark for expansion is acquisition-based growth. In 2021, the company bought Topps to boost its collectibles division and apparel line Mitchell & Ness.