New York, NY. – December 7th. Portrait for a profile on Michael Rubin, founder and CEO of Fanatics, in his office in downtown NYC.
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Fanatics has been in discussions to acquire Betparks sportsbook, according to people familiar with the matter, as the sports merchandising company seeks to take a bigger position in sports betting.
A deal has not been done, although the Fanatics signed a letter of intent to buy the sportsbook, said the people, who were not authorized to speak publicly on the matter. A deal price has yet to be learned, the people said, and the discussions may not result in an agreement.
Representatives for Fanatics and BetParks declined to comment.
betparx app was launched last year by Greenwood Gaming & Entertainment, the parent company of Parx Casino in Pennsylvania, and Playtech, an online gambling software supplier. BetParks is also available in New Jersey, Pennsylvania, Maryland, Michigan and Ohio.
The hardliners are considering an initial public offering but are looking to complete an acquisition in the gambling sector, along with other potential deals, before going public, the people said.
The company will be entering a crowded market. Dozens of sports-betting operators have emerged in recent years, including Flutter-Famous FanDuel, draft kings, Kaiser and BetMGM, which is co-owned by MGM Resorts And Maintain, as space became more competitiveSmaller players have struggled, with some, such as MaximBet, recently ceasing operations.
Hardliners have been demanding a deal in the sports betting sector for some time. Last year it was discussed with small gambling operator Tipico. CNBC had earlier reported,
company is opening Fanatics Sportsbook at FedExFieldStadium of the NFL’s Washington Commanders. Fanatics also said it has received a provisional license to operate in Massachusetts, and plans to partner with the Plainridge Park casino, owned by Penn National.
In October, the hardliners said this Appointed Andrea Ellis as Chief Financial Officer of its betting and gaming division.
Last year, Michael Rubin, the billionaire executive chairman of the radicals sold its 10% stake At Harris Blitzer Sports Entertainment, owner of the Philadelphia 76ers and New Jersey Devils, allows fanatics to enter the gambling scene. NBA rules prohibit team owners from operating gambling platforms.
Fanatics raised $700 million in capital late last year, which the company planned to use for potential mergers and acquisitions in the collectibles, betting and gaming businesses. CNBC reported earlier.
The new round of capital raised the fundamentalists’ valuation to $31 billion.
Rubin’s company has been growing rapidly lately, expanding beyond just being an online sports merchandise business. The company estimates that its revenue for Fanatics, including its Lids segment, will be approximately $8 billion in 2023.
The company is growing through acquisitions. Last year, it expanded its footprint in the collectibles business with the $500 million acquisition of Topps. It also bought clothing brand Michel & Ness. In partnership with LeBron James and Kevin Durant,
-CNBC jessica golden contributed to this article.