Decision on Fanatics New York Online Sports Betting License Likely in September

• The New York State Gaming Commission provided an update on the potential New York online sports betting license transfer to Fanatics
• Fanatics acquired PointsBet’s U.S. assets in July
• PointsBet was one of the nine original operators to be approved for a New York online sports betting license

The transfer of a New York online sports betting license to Fanatics will not be immediate, as the New York State Gaming Commission reported today the operator will need to undergo a thorough evaluation for suitability before entering the Empire State.

New York State Gaming Commission Chairman Brian O’Dwyer revealed today the commission will evaluate Fanatics for suitability before making a recommendation on the transfer of the PointsBet license.

A final recommendation on the license will likely be made during the commission’s September meeting.

No Simple Transfer of New York Online Sports Betting License

Fanatics will have to become the new outright owner of the license, which O’Dwyer said requires complete staff review and commission approval before becoming final.

PointsBet’s New York online sports betting license was one of the jewels in the Fanatics acquisition of the company’s U.S. assets. In late June, Fanatics improved its bid to PointsBet for $225 million, topping DraftKings’ final offer of $195 million for the company’s U.S. assets.

Through the purchase, Fanatics gained market access into several lucrative sports betting markets through the deal. PointsBet  has U.S. market access in 14 states, including New York, New Jersey, Michigan, and Pennsylvania.

According to the acquisition details provided from the original Fanatics/PointsBet deal in May, Fanatics will begin acquiring PointsBet assets for three states this month. It’s unknown what state assets will first be turned over to Fanatics. PointsBet will hand over access to three more states on a rolling basis until all U.S. entities are acquired by Fanatics Betting and Gaming by May 2024 at the latest.

O’Dwyer did note at a previous New York State Gaming Commission meeting that Fanatics reps had told the commission they hoped to have PointsBet’s online sports betting license in hand by the start of the upcoming football season. If Fanatics is hoping for a New York launch by football season, the state would have to be included in the initial asset turnover.

PointsBet was one of nine operators to receive a New York online sports betting license from the commission. PointsBet has been live in the state since January 2022, reporting $607 million in total handle, New York State Gaming Commission Executive Director Robert Williams said today.

The online operator has reported just $18.6 million in tax revenue for the state, good for sixth most out of the nine operators, Williams noted.

Fanatics Being Considered in 12 Other Jurisdictions

Williams reported Fanatics is currently live in Maryland, Massachusetts, Tennessee, and Ohio. Ohio is the only state of the four that has registered any official “complaint” with Fanatics, asking the operator to discontinue a promotion offering to match customer sportsbook bonus bets for Fanatics merchandise purchases.

Fanatics discontinue the promotion and no fine was levied by the Ohio Casino Control Commission.

While currently licensed in five states, Williams said Fanatics is being considered for licensure in 12 other jurisdictions. He noted that Colorado, Iowa, New Jersey, and Virginia were likely to make final considerations on Fanatics sports betting licensure very soon.