Fanatics targets 40% betting profits

This target only makes sense if Fanatics turns betting into its main profit engine, not just another add on business. The logic is simple. Merch and trading cards create a cheap, owned stream of sports fans, then sportsbook, casino, and prediction products try to make more dollars from the same fan over time. That is the opposite of DraftKings and FanDuel, which mostly have to buy betting users first and monetize them inside gambling alone.1 2 3 4 5

• Fanatics has already built the funnel. It says it has 100M+ fans across commerce, and Fanatics ONE ties bets back to merchandise with FanCash rewards, so a jersey buyer can be pushed into the sportsbook, then redeem winnings or rewards back into apparel, tickets, or experiences.1 2 6
• The financial setup is why Rubin can talk about profit mix, not revenue mix. Betting was only about $300M of revenue in one 2024 snapshot, but management kept scaling through the PointsBet U.S. deal, and gaming later grew to about $650M, or roughly 7% of 2025 revenue. A smaller revenue line can still become a much larger share of profit if mature betting margins outrun retail.2 3 7 8
• The comparable is what happened at DraftKings and FanDuel. They converted fantasy users into sportsbook customers and grew to about $11B combined revenue by 2024, with sports betting producing 60%+ of revenue. Fanatics is trying a similar wallet expansion play, but starting from merchandise and collectibles instead of fantasy sports.4

The next phase is Fanatics becoming a bundled sports wallet, where buying a jersey, opening cards, placing a bet, and trading event contracts all live in one account. If that loop keeps lowering acquisition cost and lifting repeat spend, betting can become the companys largest profit pool even without becoming its largest revenue segment.1 5 6 8