Fanatics Making iGaming, Sports Betting Inroads, Says Analyst
Posted on: July 29, 2025, 01:46h.
Last updated on: July 29, 2025, 02:02h.
- Fanatics chipping away at larger operators
- Promotional intensity is high, says analyst
One of the prime examples of a duopoly in Corporate America is the one possessed by DraftKings (NASDAQ: DKNG) and Flutter Entertainment’s (NYSE: FLUT) FanDuel in the online sports wagering space.
In the states that have open sports betting markets allowing an array of operators to do business there, DraftKings and FanDuel hold dominant positioning as measured by gross gaming revenue (GGR) market share, but some rivals are making gains. That group of upstarts is largely led by Fanatics.
DraftKings took handle market share in 2Q25, increasing 73 basis points, but both DraftKings and FanDuel lost gaming market share to Fanatics,” wrote Citizens equity research analyst Jordan Bender in a new report. “Fanatics’ continued climb has been impressive, as we believe the company is taking share from the two bellwethers in the space.”
Citing state data, Citizens notes that as of the end of June, FanDuel and DraftKings combined for 74.5% GGR market share in 13 states and Washington, DC. That’s down from 80.6% in June 2024. Fanatics was the biggest gainer over that span as its GGR market share surged to 8.6% from 3.8%.
Fanatics Has Been Making Sports Betting Strides
Bender’s assessment jibes with other recent data points indicating Fanatics, and to a lesser extent Bet365, have been gaining sports betting market share.
The same is true in the iGaming space — a segment that’s currently a three-horse race between FanDuel, DraftKings, and BetMGM. At the end of June, that trio combined for 72.5% of internet casino GGR market share, but Fanatics more than doubled its share to 2.9% from 1.4% a year earlier, according to data cited by Citizens.
Bender noted Fanatics’ share in that industry is now flirting with 3% after hovering around just 1% at the start of 2024. In May, the operator launched its standalone iGaming app in Michigan, New Jersey, Pennsylvania, and West Virginia, four of the seven states where that form of wagering is allowed.
In June, FanDuel, Caesars Digital, and Rush Street Interactive joined Fanatics as the operators making noteworthy internet casino market share gains.
Fanatics Spending to Gain Share
As impressive as Fanatics’ iGaming and online sports betting market share gains are, the operator isn’t accomplishing those feats without spending money. In fact, it’s promotional spending is outpacing rivals’ comparable expenditures.
Fanatics promo rate (promos/handle) is over double, or in some cases, triple that of the major companies operating in the US,” adds Bender.
Fanatics currently has the luxury of being a privately held company, meaning analysts and public investors aren’t heavily scrutinizing marketing costs. However, if the firm eventually goes public, it could be compelled to follow the playbook previously deployed by rivals, which is to rein in promo spending to increase the focus on profitability.
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