Fanatics Sportsbook Sees Record High Monthly Handle in New York

Don’t look now, but Fanatics Sportsbook is starting to make some waves in the Empire State.

Fanatics reported a massive $143.2 million September handle in New York, setting a new monthly record. The operator has set a new record for wagers in three consecutive months, a great sign heading into football season. The handle was the fifth-highest in the state.

Promo spending has been the driving force behind the impressive run. Fanatics has been offering valuable promotions in the state, which has attracted more bettors. While promos don’t significantly increase the operator’s revenue, they are leading to more users making the switch to Fanatics.

The promising results mean that Fanatics’ decision to acquire PointsBet’s US business is paying off. The deal gave the sportsbook access to licenses in many key markets, including New York. It was a significant investment, and now the operators are beginning to reap the rewards.

Is Fanatics’ Success Sustainable?

As impressive as Fanatics’ recent run has been, there are a couple of reasons to question its longevity. 

The first is the arrival of ESPN Bet, which went live in the Empire State at the end of September. The Penn Entertainment-owned sportsbook offers many welcome promos, competing with those from Fanatics. ESPN is also one of the biggest brands in sports, which could lure bettors to its platform. 

The other reason is the promos Fanatics is offering. While they are bringing in customers, there is a reason why other operators are unwilling to match Fanatics: New York’s 51% tax rate. The Empire State’s tax rate is the highest in the country, leading to many sportsbooks offering fewer and less valuable promos and bonuses.

New York is just one market, but its size makes it the most important for sportsbooks. If Fanatics can continue to compete, it will ensure they have staying power in the US sports betting industry. If not, the operators could join the ever-growing list of sportsbooks exiting the market.