One new Ohio sportsbook is making waves. Fanatics Sportsbook, which brings brand recognition and a novel concept to the market, offered a new promo in Ohio and has cut the ribbon on two retail sportsbooks in the state within a month.
Fanatics is going big in Ohio and is vying for a position among the largest Ohio sportsbooks. But how much market share could the new app capture in a crowded Ohio sports betting market?
Fanatics wants to be a big deal in Ohio
The state saw a smaller player in the U.S. market, bet365 Ohio, climb to third in the Buckeye State’s monthly sports betting handle. Persistent advertising and a great new-user promo helped them get there.
Fanatics, on the other hand, has made a significant investment to hit the ground running in several states. That included purchasing a competing sportsbook, PointsBet, which, among other benefits, granted Fanatics market access to 12 new states. It also offered a potential customer base in PointsBet’s existing customers.
The PointsBet deal was such a “big deal” that DraftKings attempted to outbid Fanatics and buy PointsBet themselves. Fanatics stepped to the plate to make the deal happen, paying $225 million for the company– 50% more than the original offer.
Signaling plans for a significant presence in the Ohio market, Fanatics opened two retail sportsbooks in the state the same month the app launched.
Fanatics competitive product will go far in Ohio
Fanatics is a rare sportsbook in that it offers something of substance that no others do. Using the Fanatics Sportsbook app, bettors earn 1-5% back as points, redeemable like cash for Fanatics merchandise.
In addition, the app launched with one of the best new user promos of any sportsbook app we’ve seen in Ohio. Currently, a new promo for new users is in place to kick off the football season. The Fanatics Jersey Drop promo gives new users a $150 credit toward team merchandise at Fanatics if they place a $50 wager.
The app also keeps up with the more popular apps in terms of in-app promos like profit boosts, and so far the reviews have been positive.
We think this is a recipe for success in Ohio’s competitive market, and Fanatics has a better chance than others at reaching the level that bet365 has.
How far does Fanatics have to go?
Figures for August aren’t available yet, but if we combine all-time handle from PointsBet and Fanatics combined, the company would rank 9th in betting volume in Ohio. The $36.7 million the two companies have taken in through July is a long way from even the 5th ranked sportsbook, Caesars, who has amassed $186 million in handle since launch.
bet365 has managed to beat out Caesars Sportsbook Ohio, bringing in $243 million through July. That figure is not far from the No. 3 book’s total– BetMGM Ohio has seen $265 million in handle.
The state’s two largest sportsbooks, DraftKings Ohio and FanDuel Ohio have both surpassed $1 billion in handle. It’s not likely Fanatics or any other app will be on their level any time soon. For comparison, it would take the next seven sportsbooks’ YTD totals through July to cross the $1 billion mark.
