Fanatics One Of Two New Sportsbooks Coming To Illinois This Year

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Written By Dave Briggs on May 15, 2023 – Last Updated on May 17, 2023

Illinois appears poised to welcome two new sportsbooks in 2023, as Fanatics recently completed a $150 million deal to acquire the U.S. operations of PointsBet.

If approved by both shareholders and the Illinois Gaming Board, Fanatics could potentially replace PointsBet in Illinois before the start of the lucrative NFL season in September.

Circa Sportsbook aims to become the eighth sportsbook in Illinois by the same time frame. Their license was approved by the IGB in April, and they are planning to launch in August of this year, according to Play Illinois.

Fanatics would instantly become the fourth biggest Illinois sportsbook operator

Fanatics could quickly expand their reach to 14 states by acquiring PointsBet’s US operations.

Should Fanatics decide to enter the Prairie State, they would quickly rise to become the fourth largest sportsbook operator in Illinois, a state that boasts the second highest profitability in the nation for sports betting.

According to a report from Play Illinois, PointsBet accounted for 7.7% of all lifetime sports bets placed in Illinois as of February. This places PointsBet in fourth position, behind DraftKings (33.2%), FanDuel (27.3%), and BetRivers (16.1%).

PointsBet captured 7.3% of the revenue in the Illinois sports betting market, ranking below FanDuel (37.3%), DraftKings (26%), and BetRivers (16.6%).

Illinois has emerged as a highly lucrative market for sports betting, as evidenced by the state’s record-breaking month in March. With over $1.072 billion in sports bets placed, Illinois ranked second in the US for both handle and revenue for the month. The state has maintained this position for year-to-date figures as well.

Fanatics currently operates in four states

Fanatics currently runs sportsbooks in Maryland, Massachusetts, Ohio, and Tennessee.

PointsBet currently offers sports betting services in Maryland and Ohio, as well as other locations. If Fanatics were to acquire PointsBet, they would have access to a total of 14 US markets. This includes the four markets where Fanatics already operates, as well as the 12 markets where PointsBet operates but Fanatics does not.

Fanatics and PointsBet have announced a partnership that will result in Fanatics Betting and Gaming acquiring PointsBet’s U.S. business. While there are still several steps to complete in the acquisition process, both companies are feeling positive about the potential outcome. Additional information regarding the agreement will be shared by Fanatics Betting and Gaming and PointsBet in the coming weeks.

Fanatics is valued at $31 billion privately and projects its revenue to hit $8 billion by 2023.

PointsBet found US sports betting market tough sledding

Despite being the seventh largest online sportsbook operator in the US out of more than 60 licensees, PointsBet has struggled to decrease the market dominance of FanDuel and DraftKings.

PointsBet has announced that it does not expect to see a positive cash flow in the near future. Additionally, the company has acknowledged that its current cash reserves are not enough to make its US operations profitable.

Meanwhile, Fanatics has had tremendous success in the sports apparel and memorabilia markets. The company acquired Topps trading cards for $500 million in 2022.

The company is now looking to capitalize on its success by entering the sports betting market.

Illinois will play a crucial role in their plans.