Pennsylvania Sportsbook Industry Growing, As Fanatics Nearing Their Launch

The Pennsylvania Gaming Control Board (PGCB) recently approved the change of control from PointsBet to Fanatics Sportsbook, marking a significant step towards launching Fanatics' online sports betting platform in Pennsylvania. This development has generated significant interest in the Pennsylvania’s  online sports betting landscape.

Fanatics, a sports merchandise giant with unparalleled brand recognition, is preparing to enter Pennsylvania's competitive world of online sports betting. While this transition may raise questions about how a retail-focused brand will perform in the digital betting space, Fanatics has some intriguing features that could help it stand out in the market.

One of the standout features that Fanatics PA Sportsbook brings to the table is its FanCash rewards program. This loyalty program allows users to earn FanCash after every bet placed, regardless of the bet's outcome.

• For straight bets, users can earn up to 1% of the amount bet as FanCash.
• Parlay bets offer even more significant rewards, with users earning up to 3% of the amount bet.
• Same-game parlays are the most rewarding, offering users up to 5% of the amount bet as FanCash.

What sets FanCash apart is its versatility. Users can redeem FanCash in multiple ways, enhancing the overall betting experience. As Scott McClintic, Fanatics Chief Product Offer, explained, "As soon as the bet settles, you get credited with that FanCash. You can use that on Fanatics.com, or you can convert it to a bonus bet on our app." McClintic also hinted at the possibility of FanCash being redeemable as odds boost and profit boost tokens in the future.

The ability to seamlessly transfer FanCash between the Fanatics online sportsbook and Fanatics merchandise platform is expected to provide a unique and engaging experience for users.

Pennsylvania's sports betting market has seen relatively few newcomers in recent years, with only three new sportsbooks launching since December 2020. These include BetMGM (December 2020), Betway (June 2021), and PointsBet (February 2022). Fanatics' entry into the Pennsylvania market will essentially replace PointsBet, maintaining the number of operators while introducing fresh competition.

The recent approval of Fanatics' petition for a "Transfer of Interest" indicates that the sports merchandise company is on track to develop its online gaming and sports wagering sites in Pennsylvania. However, regulatory compliance checks and a testing period are still required before the official launch.

Fanatics has the potential to become a formidable player in the market, thanks in part to its unique feature: FanCash. This loyalty program rewards users with FanCash after every bet, regardless of the outcome. FanCash can be redeemed on Fanatics.com or converted into bonus bets on the app, with the possibility of future redemption options such as odds boosts and profit boosts.

In addition to its online PA sportsbook, Fanatics also holds the necessary licensure to operate its own online casino in Pennsylvania. While the company has the option to continue operating PointsBet Casino or rebrand it as Fanatics Casino, there is no official confirmation of its online casino plans at this time.

Fanatics' potential entry into the online casino market could further stimulate Pennsylvania's growing online gambling industry. As both Fanatics Sportsbook and ESPN Bet prepare to launch in the state, competition among online sportsbooks is expected to intensify.

While Fanatics faces the daunting task of competing with industry leaders like FanDuel and DraftKings, its innovative features, brand recognition, and a solid customer base could position it as a viable contender in the Pennsylvania online sports betting market.

• Competition with Industry Giants: FanDuel and DraftKings make up a significant portion of Pennsylvania's online sports betting market, with FanDuel leading the state in handle percentage. Fanatics will need to distinguish itself to compete effectively with these giants.
• Brand Recognition: Fanatics' strong brand recognition in the sports merchandise industry could be an advantage. The ability to leverage its existing customer base of 95 million people may play a crucial role in attracting users to its online PA sportsbook.
• FanCash Rewards: The FanCash rewards program offers a unique and appealing feature that could attract bettors looking for additional value from their wagers.
• Speed and Convenience: Fanatics has emphasized the speed of its platform and the user-friendly registration process, aiming to provide a seamless betting experience.

As the launch date draws nearer, the industry awaits the impact of Fanatics' entry on the state's evolving online gambling landscape. While the road ahead may be challenging, the innovative approach and competitive features of Fanatics Sportsbook could potentially reshape Pennsylvania's online sports betting market. As competition among sportsbooks intensifies, bettors in Pennsylvania stand to benefit from a broader range of options and enticing promotions.