Can Roc Nation Rap Up a License for Fanatics in New York?
Published September 17, 2021 by Lee R
Fanatics is expanding into sportsbetting; but can it get by existing heavyweights to reach New York?
Prominent American rapper Jay-Z is a prominent name which has entered the New York state online sportsbetting licence race.
The Application Team
The legendary rapper's longstanding publishing enterprise Roc Nation LLC is teaming with sports licensing giant Fanatics Incorporated in pursuit of one of two master online commercial sportsbetting licenses the state of New York is offering.
Fanatics to Offer Sportsbetting
Bloomberg news reports the New York native comes on the heels of Fanatics Incorporated applying for a licence to offer betting products to New York state residents via its new Fanatics Betting and Gaming enterprise beginning early next year.
New York Licensing
A state of 20 million, New York is is set to grant online sportsbetting licenses to two “platform providers” beginning as soon as December to raise a projected goal of up to $500 million in new tax revenues.
Fanatics Plans for New York
Florida-based Fanatics Incorporated is rumoured to have as many as four respective customer-facing online sports wagering brands, a.k.a. “skins,” prepared to serve the New York state market.
Jay-Z's Role
With an estimated personal net worth of $1.4 billion, the rapper whose original name is Shawn Carter would serve in the Fanatics project as Fanatics Betting and Gaming Vice-Chairman.
The Filing
Fanatics Incorporated's official filing application with the New York State Gaming Commission indicates Roc Nation LLC is on board to “help attract new customers, engage existing sports bettors and expand the overall footprint of the Fanatics sportsbook.”
Fanatics Diversification
The move is part of a diversification phase for Jacksonville-based Fanatics Incorporated, with founder and Executive Chairman Michael Rubin taking over as Chief Executive Officer. To expand the company’s interests into iGaming, he hired former head of Fanduel Group Matt King to head Fanatics Betting and Gaming subsidiary.
Competitors for New York Licenses
Competition for the licenses comes most prominently from a joint bid from FanDuel Group, DraftKings Incorporated, MGM Resorts International and Bally’s Corporation; plus a “superteam” consortium of Caesars Entertainment Incorporated; Wynn Resorts Limited; Rush Street Interactive Incorporated; Genting Malaysia Berhad and PointsBet USA subsidiary in Australia PointsBet Holdings Proprietary Limited; plus a bid from European giant Bet365 Group Limited and Canadia's Score Media and Gaming Incorporated.
Outlook
Jay-Z or not: this license is anything but automatic for the applicants.
