Fanatics wins Arizona sports betting license amid US expansion plans

Fanatics is set to enter the Arizona sports betting market after securing an event wagering operator license from the Arizona Department of Gaming. This will be the company's 17th state once it goes live there.

Fanatics will partner with the Tonto Apache Tribe to launch its sportsbook in Arizona. The license acquisition comes with an upfront cost of $850,000 and an annual renewal fee of $150,000.

Despite its prominence in sports memorabilia, Fanatics is a relatively new player in the sports betting arena. With its expansion into Arizona, Fanatics will operate in 17 states, with plans for further launches in Kansas, Louisiana, New Jersey, and Wyoming. Just last month, the company made its debut in New York.

In Arizona, where online sports wagering dominates the market, Fanatics will compete with 17 existing online sportsbooks and over 25 retail locations. Market leaders like FanDuel and DraftKings, generating over $100 million in handle each, dominate Tier 1. Fanatics is expected to compete in Tier 3, alongside smaller operators like Hard Rock Bet and Desert Diamond.

While Fanatics may not reach the heights of Tier 1 operators, its experience in other top sports betting states like New York, Pennsylvania, and Ohio positions it well to navigate Arizona's competitive landscape. Additionally, its imminent launch in New Jersey and North Carolina further strengthens its national footprint.