Fanatics plans to spend up to $1bn on betting marketing in 2027

Fanatics announced it plans to spend between $800M and $1bn on betting and gaming marketing in the United States during 2027, CEO Michael Rubin said in an interview with Bloomberg published on 5 October 2026. The figure would almost triple the roughly $350M the company invested in 2026 and is aimed at closing the gap with market leaders DraftKings and FanDuel.

Context: why Fanatics is increasing marketing spend

Rubin said Fanatics Betting & Gaming remains “a distant third” in the US, although its market share has grown to more than 10% since it launched its sportsbook in 2023. The budget increase is intended to accelerate customer acquisition and brand visibility against incumbent operators. Rubin placed the spending range at $800M to $1bn and said the decision is based on an assessment of “how we close the gap and how we actually grow our market share.”

The executive also described a tougher competitive environment than a year ago, and cited three dynamics that complicate expansion:

• state revenues have hit a ceiling in mature markets such as Pennsylvania, New Jersey and New York;

• the arrival of new states to the regulated market is slower than expected;

• prediction market platforms, which include Kalshi and Polymarket, have grown quickly.

"Is it much harder today than it was a year ago? Absolutely," Michael Rubin said about competition and marketing costs.

How the spending fits into the group's financial structure

Fanatics is a private company that, according to Rubin, can tap cash flow from its merchandising and collectibles divisions to fund the still-loss-making betting business. The group expects total revenue to grow about 40% to around $14bn in the current fiscal year. The projection breaks down those revenues as:

• approximately $2bn from betting and gaming;

• $7bn from licensed merchandising;

• $5bn from collectibles and trading cards.

The company also expects $2bn in free cash flow for the year, with about $1bn in net cash and no debt.

Products, loyalty and network effects

Fanatics attributes part of its sportsbook growth to its FanCash loyalty programme. Customers earn "FanCash" on every bet, win or lose, and can spend that balance across the Fanatics ecosystem. Rubin said the betting unit will generate more than $1bn in FanCash this year.

Chief financial officer Glenn Schiffman told Bloomberg that about 3% of the group's 22–23 million annual customers buy across more than one of its divisions. Schiffman added those multi-channel customers spend five times more than a single-unit customer and have repeat rates between 1.5 and 3 times. In his words: "We are really seeing the network effects kick in." That figure underlines cross-sell potential but also shows integration between businesses is still at an early stage.

Product and expansion: Fanatics Markets and the integrated app

Fanatics launched its prediction markets platform, Fanatics Markets, in December to compete in a fast-growing segment. The company has also introduced an all-in-one app that bundles product offerings under the [Fanatics Sports & Casino](/casino) brand, integrating the sportsbook, the casino and prediction markets in states that include California, Florida, New York and Texas.

Competition, acquisition cost and new market dynamics

Rubin acknowledged marketing costs have risen due to greater competition: FanDuel and DraftKings now compete not only with each other but also with Fanatics and prediction market platforms such as Kalshi and Polymarket. The result is pricier campaigns and more pressure to maximise performance per marketing dollar.

The executive also anticipated “a very tough road ahead for everyone”, including traditional sportsbooks and event-linked platforms, and said the regulatory framework will likely change in coming years. See more on [regulatory trends](/regulation).

Corporate strategy and the outlook on an IPO

Rubin, who owns 31% of Fanatics, ruled out a near- or medium-term IPO. He argued the company has cash generation from other businesses to fund new bets and said the firm is singularly focused on building a digital sports platform for hundreds of millions of fans at global scale.

"I want to be number one in everything that I'm doing," Rubin said when asked about a possible IPO.

Implications for operators and suppliers

The plan to raise marketing spend to nearly $1bn in 2027 will increase competitive pressure in marketing and customer acquisition in the US market. incumbent operators may respond with higher investment in retention, product and rewards; new entrants will need to decide whether to replicate the FanCash approach or prioritise other levers. For technology and media suppliers, higher advertising demand could increase sales of traffic acquisition, analytics and loyalty management services. Read more in our [/b2b](/b2b) coverage.

Conclusion

Fanatics has set a clear number: between $800M and $1bn in marketing spend for 2027 with the goal of accelerating its market share from the current ~10% and closing the gap with DraftKings and FanDuel. The company backs that investment with projected $14bn revenues and the ability to channel cash from merchandising and collectibles into its betting unit.