Fanatics CEO Michael Rubin Projects Sports Betting Ad Spend to Reach $7B by 2027

A multi-billion-dollar ad war is brewing in U.S. sports betting, with industry-wide marketing spend projected to reach $7 billion in 2027 as operators fight off rising prediction market rivals, according to Fanatics CEO Michael Rubin.

He made the remarks in an interview with CNBC earlier this week. Rubin recently estimated that privately held Fanatics could spend as much as $1 billion next year on betting and gaming advertising or nearly triple the $350 million the company will spend this year.

He clarified that the $7 billion figure applies to “the overall marketing space” across sportsbook operators heading into 2027, adding that the market “couldn’t be any more competitive” as he pointed directly to fast-growing prediction market platforms like Polymarket, Novig and Underdog.

As Sports Betting Spending Surges, Fanatics Has Advantages

While there are a few well-capitalized contenders in the sports betting arena, Fanatics has some advantages. Those include its status as a private company, meaning it’s not beholden to satisfying Wall Street and public investors in three-month intervals.

Additionally, Fanatics holds leading positions in sports apparel and collectibles—business units Rubin expects could generate over $12.5 billion combined this year. This gives Fanatics the unique luxury of funneling strong profits from its core merchandise ecosystem into its betting and gaming expansion.

Rubin also discussed the possibility of consolidation, telling CNBC that the industry has coalesced into a “five-way fight” among top-tier brands: traditional powerhouses DraftKings (NASDAQ: DKNG) and Flutter Entertainment’s (NYSE: FLUT) FanDuel, Fanatics itself, and the two leading prediction market operators.

He said that he’s “not sure” what the level of consolidation could be among those five giants over the next several years, acknowledging that the industry is “super-competitive” and that there are likely to be plenty of tussles over the next few years.

‘It will not be a fun next couple of years’

Rubin acknowledged that while Wall Street observers remain skeptical about sports betting profitability—warning that rising customer acquisition costs mean “it will not be a fun next couple of years”—he remains firmly bullish long-term. His five- to 10-year outlook is far brighter than current market headwinds suggest.

Ultimately, Rubin believes sports wagering remains a fundamentally sound business that fits seamlessly within the broader Fanatics digital and retail ecosystem.