Another operator of sports betting sites is teed up for launch in Massachusetts.
The Massachusetts Gaming Commission (MGC) unanimously voted in favor of awarding an operations certificate on Tuesday to a company connected to Fanatics Sportsbook, putting the operator on the verge of launching mobile wagering in the commonwealth.
Commissioners heard Fanatics had passed all the necessary tests to qualify for the certificate and that it planned to launch in the Bay State at some time around the end of May. Those hurdles included having their responsible-gambling plan, internal controls, and geofencing capabilities approved, among other things.
Fanatics was approved for a temporary mobile sports betting license in February. Tuesday's approval nudges the operator even close to launching in the Bay State.
“They've indicated that they would start operations at the end of this month,” said Bruce Band, the MGC’s sports-wagering director, during Tuesday’s meeting.
Massachusetts regulators are poised to give a key approval today to the sports-betting arm of @Fanatics, putting the operator near to launching in the state. Fanatics is fresh off announcing plans to buy @PointsBetUSA so commissioners may have a Q or two.https://t.co/mkEx5q925O pic.twitter.com/uG6fGipkCd
— Geoff Zochodne (@GeoffZochodne) May 16, 2023
Fanatics is offering legal sports betting in Maryland (at a retail sportsbook), Ohio, and Tennessee. It is now near to taking action in Massachusetts, and its recently announced plans to acquire the U.S. operations of PointsBet will open doors in additional states.
Massachusetts sports betting currently consists of seven online sportsbooks and three casinos with retail operations. Fanatics could become the eighth online sportsbook in the state. PointsBet was previously found suitable for a license before announcing it was withdrawing its application.
There was no discussion of the pending PointsBet acquisition during Tuesday’s MGC meeting. But Matt King, CEO of Fanatics Betting and Gaming, spoke during last week’s SBC Summit North America in New Jersey of the “second-mover” advantage the up-and-coming operator has, allowing them to take their time and craft an approach to help it stand out from the crowd.
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King, the former CEO of FanDuel, said he saw with Fanatics the opportunity to build a "broader digital sports platform," as the company has a strong position in the merchandise industry and growing collectible and wagering businesses. Fanatics plans on putting its 95-million-person customer database to use in building its sportsbook operations and offer “FanCash” to bettors they can exchange for jerseys and other merchandise.,
“I think the next wave of growth in this industry really comes from innovation and how do you think about doing it better,” King told the audience. “We as an industry have a satisfaction gap to close if we want to be viewed as kind of a category that's on par with the best consumer technology.”
King also noted that the cost of market access had fallen by 40% to 50%. Those comments were followed by the announcement Sunday evening that Fanatics is buying the U.S. business of PointsBet for $150 million, which would provide Fanatics with access to more than a dozen states, including New York.
Based on King’s comments, Fanatics may not be ready to accept huge bets or a ton of sharp action right out of the gate. He said during SBC that he expects they will build models over time that will become some of the most accurate in the industry and allow for heavier action.
“We'll be able to… have higher conviction, as high conviction in our prices as anybody does in the industry,” King added.
