The founder and executive chairman of Fanatics Michael Rubin said that Fanatics will “absolutely” go public and is aiming to become the number one business globally for online sports betting and iGaming.
On the question about possible partnerships with established betting operators, Rubin was clear about their vision ”No, not partnering. We absolutely are going to do it ourselves. We want to be the number one player in online sports betting and iGaming in the world, long term.” Rubin commented. “And you could say that’s crazy, and who is this guy to say that? But you know, we weren’t in the merchandise business 10 years ago. Now we’re the number one company by far and away, and we weren’t in the collectibles business two years ago and now we’re number one.”
He added that the current US sports betting industry is ”broken”. He believes that the competition between operators for market share has led to unsustainable business practices. The creation of an industry needs to improve its potential to generate profit.
He said that outside of the US, all online sports betting and iGaming companies make a lot of money. “And if you look offline in the US, they make a lot of money. But if you look at the online companies, they’re hemorrhaging cash. Why? Because the private equity firms and VC firms gave them free money between 2018 and 2021. They said ‘hey, take our money and just spend it,’ and they didn’t actually say to do it logically.”
What makes Fanatics different?
Fanatics has an 80+ million robust customer database of dedicated sports fans. This way, they want to be ahead of other sports betting operators. Additionally, they could spend less on advertisement and marketing.
Fanatics CEO highlighted, “We also have employees that own 10% of the business and we want to get them liquidity, so we’ll definitely become a public company over time. It’s just a question of what’s the right time for us and we’ll do it in the right market as we continue to make progress on our journey.”
Read more about Fanatics CEO on global sports retailer strategy here!
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