New York is probably the largest sports betting markets in the U.S. and could potentially earn $20 billion per year. Needless to say, it is a market that many sportsbooks are looking into entering because of its potential. However, not everyone can enter this sports gambling market because it its high sports wagering tax and licensing fee. Only companies with big pockets or with partnerships can afford it. Following that trend, Jay-Z Applies for a New York Sports Betting License alongside Fanatics Inc.
Jay-Z along with his company Roc Nation is partnering with Michael Rubin, owner of Philadelphia 76ers and Fanatics Inc. Fanatics Inc. is a sports-merchandising company that is very serious about entering the sports betting market. Together, they will be operating the Fanatics Sportsbook in New York.
According to the NYSGC (New York State Gaming Commission), Fanatic Sportsbook will be run by Fanatics Betting & Gaming organization. Jay-Z will assume the position of a vice-chairman on its board of director. In addition, Rubin will be the chief executive of the organization.
Jay-Z Applies for a New York Sports Betting License along with 5 other Companies
Fanatics Sportsbook is of course not the only company looking to open a sports betting operation in New York. At the moment, the NYSGC is reviewing a total of 6 applications and will have an answer by December 2021. However, the competition is stiff as only 2 sportsbooks will obtain a sports betting license in New York.
Each winning bid will have to operate a minimum of 4 sportsbook platforms in New York. The NYSGC is hoping that they will be able to launch their online betting market before Super Bowl LVI.
For their part, Fanatics Betting & Gaming intends to become a major competitor in the online sports betting market. In fact, they are part of a consortium led by Kambi, a sports betting software provider in Sweden. For its part, Fanatics Sportsbook will be run by Matt King, the former CEO of FanDuel
While they do have an impressive lineup, Fanatic Sportsbook will be competing against some tough opponents for a license. They include FanDuel, DraftKings, BetMGM and Bally.