Fanatics Betting and Gaming has become the first new online operator in New York since launch in January 2022.
Following a meeting of the New York State Gaming Commission, the transfer of PointsBet’s New York license to Fanatics was approved by regulators.
Fanatics sports betting arm previously announced the acquisition of PointsBet for $225 million, giving it access to 14 regulated US states (pending individual regulatory approval).
The New York mobile sports betting market is the largest in the United States, with handle for August again eclipsing $1 billion. The market is dominated by DraftKings and FanDuel, who account for over 75% of wagers between them currently. New York, although the largest market in the country, also has the highest tax rate with 51% of mobile sports betting GGR paid back to the state.
For August, PointsBet took $17.1 million in wagers, taking 1.5% market share when measured by handle. The company generated $914,020 in gross gaming revenue at a 5.3% margin.
A spokesperson for Fanatics issued the following statement after the commission meeting had ended: “Today, the New York State Gaming Commission approved Fanatics Betting and Gaming’s acquisition of PointsBet New York LLC. We would like to thank the commissioners and staff of the New York State Gaming Commission for their time and effort in delivering us some great news today. We look forward to working with the staff of the New York State Gaming Commission to bring the Fanatics Sportsbook to the largest sports wagering state in the U.S.”
There has currently been no other movement on sports betting licenses in the Big Apple. After deciding to part ways with Barstool Sports, Penn Entertainment and new media partner ESPN announced their intentions to compete with DraftKings and FanDuel but without New York market access it looks unlikely.