Fanatics Beats Out FanDuel With Massive August New York Handle

Fanatics just delivered a stunning blow to FanDuel in the Empire State.

The sportsbook saw over $565 million in wagers accepted in New York during August. That was around $6 million more than FanDuel, beating the industry-leader for the first month in its history. DraftKings once again led all sportsbooks in the state with $579 million in bets. 

Fanatics' previous record monthly New York handle was $194 million.

What Drove Fanatics' Success?

Fanatics Sportsbook has defied the odds to become one of the most popular platforms in the country. The operator has begun to establish itself as America’s third-favorite sportsbooks, but still trails DraftKings and FanDuel by hundreds of millions each month. 

We don’t know exactly what is behind the impressive handle, but we know it led to an increase of around $430 million compared to the month before. Given that a massive jump in users is unlikely in that short time, it seems probable that a few big-money bettors decided to give the platform a try. 

Can the Hot Streak Continue?

As impressive as August’s handle was, there is certainly reason to believe the same success may not be seen in September. While the football season is the busiest time of year for sportsbooks, each operator steps up their game with promotions and bonuses to attract more bettors. With so many offers out there, many bettors prefer to use several sportsbooks throughout the season.

It is also important to note that, despite a massive uptick in wagers, Fanatics generated only just over $16 million in gross gaming revenue for August. FanDuel, which finished behind Fanatics in handle, reported over $62 million in gross gaming revenue. 

The significant disparity between handle and revenue is a key reason we anticipate a regression this month.

New Loyalty Program Winning Over Bettors

Fanatics recently rolled out a new loyalty program called Fanatics ONE. This allows bettors to earn FanCash when they place wagers, similar to other industry rivals. However, the operator can offer something other sportsbooks can’t: official team merchandise.

Fanatics has been successful in sports betting, but the bulk of their business comes from selling official sports merchandise. The company has partnerships with all major pro sports leagues, as well as several prominent college athletic programs. This means that bettors, who are often diehard sports fans, can earn expensive merchandise simply by placing wagers.