Days after Fanatics CEO Michael Rubin announced he was selling his stake in the Philadelphia 76ers & New Jersey Devils, the company is once again making headlines.
This time, the sports merchandise company is discussing acquiring sports betting company Tipico.
According to a CNBC article, price appears to be the one thing holding up a potential deal. Regardless, Fanatics seems full steam ahead on its plans to launch its new sports betting brand — BetFanatics.
What acquiring sports betting company Tipico means for Fanatics
Tipico is a relatively small US sports betting business with licenses in two states.
However, the company is the leading sports betting provider in Germany. According to the Tipico website, there are hints the company could launch in Indiana, Iowa, and Ohio.
If Fanatics can get a deal done, one could assume all Tipico sportsbooks would rebrand to BetFanatics.
A similar situation happened when Penn National Gaming acquired a stake in Barstool Sports. After the deal, all Penn National sportsbooks rebranded to the Barstool Sportsbook.
Fanatics launching in Maryland soon
Fanatics has received partial approval from the Maryland Lottery, which inches the company closer to its first sports betting license. The company still requires approval from the Sports Wagering Application Review Commission before taking any bets.
Rubin appears confident BetFanatics will launch in 2022, telling Fox Sports:
“By the end of the year…I’ll be taking bets on the Sixers.”
Before launching in Maryland, Fanatics still needs to find itself a gaming partner.
Five casinos already have sports betting partners.
- Hollywood Casino & Barstool Sportsbook
- Horseshoe Casino & Caesars
- Live! Casino & FanDuel
- MGM National Harbor & BetMGM
- Ocean Downs Casino & TwinSpires
Pennsylvania is also pending
In addition to Maryland, Fanatics also has an application pending in Pennsylvania.
Fanatics submitted five applications with the Pennsylvania Gaming Control Board on April 26. Those applications are for PA sports betting, online casino, and three affiliate licenses.
Selling stake in NBA to invest in betting
On Wednesday, Rubin announced he was selling his 10% equity stake in Harris Blitzer Sports Entertainment. The National Basketball Association rules prohibit owners from operating a gambling platform.
However, once the sale is complete, Fanatics can enter into financial partnerships with individual players.