The reports say that the famous rapper and entrepreneur Jay-Z has teamed up with Fanatics Incorporated, and the reason for it is pretty lucrative. The partnership with the sports merchandise giant should increase the company’s odds of getting a master online commercial sports betting license in New York. It won’t be an easy task as the state has only two such licenses available.
According to Bloomberg, the 51-year-old rapper decided to join forces with Fanatics Incorporated after the firm applied through one of its enterprises for the right to offer online services to sports bettors in the Empire State from early 2021.
An Important Market
More than twenty million people live in New York, which makes it a very appealing market. The state is ready to grant two online sports betting licenses by the end of this year, hoping to get up to $500 million in tax revenues on a yearly basis. Based in Florida, Fanatics Incorporated is interested in getting one of these approvals. If the company succeeds, it plans to offer as many as four online sports betting brands, or “skins”, as they are colloquially known.
The rapper, whose real name is Shawn Carter, was born in Brooklyn, where he grew up, and has significant involvement with various businesses in New York. The list of his ventures in the Empire State includes the Roc Nation entertainment and publishing company operating from Manhattan. The available information says that Jay-Z has been named Vice-Chairman of the new enterprise called Fanatics Betting and Gaming. From his news, he’ll give his best to obtain the available platform provider licenses.
Fanatics Incorporated even listed Jay-Z on the official license application filed with the state’s regulatory body, the New York State Gaming Commission. The filing states that the artists, whose personal fortune is worth around $1.4 billion, will work closely with Fanatics Betting and Gaming. He should help the new enterprise draw new customers, keep the existing sports betting enthusiasts engaged, and help the provider expand its market footprint.
Facing Stiff Competition
Fanatics Incorporated has recently been reorganized, with Michael Rubin, the company’s founder and Executive Chairman taking over as the new Chief Executive. Rubin hopes to enter new segments such as media, ticketing services, and, most importantly, gambling. That’s why Fanatics Incorporated hired Matt King. The former FanDuel Group executive joined in June, and his vast experience should prove essential in leading the newly-created Fanatics Betting and Gaming division.
As we already mentioned, getting the coveted license won’t be an easy task, especially as Fanatics Incorporated will face stiff competition. FanDuel, DraftKings, Bally’s Corporation, and MGM Resorts International will file a joint bid, which is seen as the front-runner for getting the approval.
The second contender for the approval is a consortium featuring Caesars Entertainment, Genting Malaysia Berhad, Rush Street Interactive, Wynn Resorts, and the US subsidiary of Australian online sports betting operator PointsBet.
Also looking to get one of the licenses are Bet365 Group and Score Media and Gaming.