Fanatics Stuns Industry With Massive New York August Handle

DraftKings and FanDuel Sportsbook have dominated the US sports betting market from coast to coast since PASPA was overturned in 2018. However, it seems that Fanatics Sportsbooks is set to disrupt the status quo.

Fanatics announced it accepted $565,830,550 in wagers from New York this August. The eye-popping number was the second-highest total for the month, putting the operator above FanDuel for the first time in any market. DraftKings grabbed the top spot, with almost $14 million more in wagers.

While Fanatics has continued to defy the odds with the success of its sportsbook, no one expected August’s results. FanDuel and DraftKings Sportsbook don’t just lead the industry; they account for well over 80% of the market share. It seemed their tight grasp on the industry would prevent a third rival from emerging, but that's what has happened in New York.

August’s results are a significant milestone for Fanatics, but time will tell if the success continues. The reason for the impressive month is unknown, meaning there is no guarantee the sportsbook will continue to compete with the two industry leaders. 

We will find out this fall if the record-setting handle is a sign of the future or simply a blip on the radar.

Is Fanatics’ Run Coming Too Late?

Fanatics has been hot, but it may be too late to ensure long-term success. That is due to the expansion of sports prediction markets, which continue to operate in all 50 states. While the opposition to the industry is strong, it seems the CFTC has no desire to crack down on it. That has led FanDuel and Underdog to join, with DraftKings likely to follow soon.

Since sports prediction markets aren’t considered to be gambling, operators aren’t subject to the same taxes and regulations. This allows it to offer a cheaper form of betting than sportsbooks, which could see their revenue slashed as a result. That has many experts worrying that regulated sports betting may be set for a significant decline in 2026, which would make the success of Fanatics short-lived.