In a significant alliance within the sports betting sector, the Connecticut Lottery has recently designated the Fanatics Sportsbook as its sole sports betting partner, a move that includes both mobile and retail betting avenues. The anticipated transition to this new arrangement is slated for a mid-December implementation.
Under this agreement, the Fanatics Sportsbook will not only roll out its services across a network of ten retail betting sites in Connecticut but will also extend these services through mobile apps. Greg Smith, president and CEO of the Connecticut Lottery, expressed his confidence in the growth of the organization’s market share as a direct consequence of this partnership.
Smith lauded Fanatics for its unique position as the sole sports brand in the gaming domain, acknowledging their status as a trendsetter in the industry. “We have been impressed with the Fanatics team, their aggressive entry into the US sports betting market, and we are excited to see how they redefine the sports betting customer experience here in Connecticut,” Smith remarked.
Eagerly pointing to projected ascents in market share, Smith articulated high expectations for the collaboration between the Connecticut Lottery and the Fanatics Sportsbook.
This partnership marks the departure of Rush Street Interactive (RSI), the previous sports betting partner of the Connecticut Lottery. RSI had reaffirmed their operational commitment in Connecticut until a new collaborator was engaged. A smooth transition from RSI to the Fanatics Sportsbook is anticipated by all stakeholders involved.
Fanatics Betting Group (FBG) now embarks on a campaign of expansion, bolstered by the acquisition of the PointsBet US business earlier this year. With the Connecticut arrangement as one of the milestones, FBG’s growing prominence in the US betting landscape has become increasingly evident.
The battle for control within the industry saw an intriguing bidding war earlier this year when FBG’s offer to acquire PointsBet US for $150.0m faced competition from DraftKings, who entered with a much larger proposal of $195.0m. Although PointsBet entertained conversations with DraftKings, FBG eventually triumphed with a final $225.0m bid.
Following the closure of this monumental deal, FBG swiftly incorporated its branding into locations previously operated by PointsBet US. Fanatics Sportsbook’s operations sprang into action in four states, namely Maryland, Massachusetts, Ohio, and Tennessee, marking the start of FBG’s strategic market takeover. This expansion continued apace with FBG’s incursion into eight additional states and subsequent completion of operations in Virginia and West Virginia.
With these developments, FBG is now in direct competition with leading market titans DraftKings and FanDuel, especially in Connecticut and the broader US online gaming market. In Connecticut’s recent October figures, DraftKings was the dominant online operator, with FanDuel trailing closely.
Connecticut’s gaming dynamics are shaped by its tribal monopoly regulations, which have now positioned the Connecticut Lottery’s deal with FBG to preclude ESPN Bet from launching in the brand’s home state—a noteworthy circumstance given that the ESPN brand, operated by Penn Entertainment, is headquartered in Connecticut.
The legalization of online sports betting in May 2021 by Governor Ned Lamont opened up the field for the state’s tribes and the Connecticut Lottery to pitch their stakes in the sector. The regulatory framework allowed each tribe a single sports betting skin and a corresponding igaming skin, with the Lottery also obtaining rights to one sports wagering skin and up to 15 retail betting locations across the state.
As FBG secures the third and final available slot, ESPN Bet and other potential entrants face barriers to entry in the Connecticut market, shaping the competitive landscape and patron betting experiences for the foreseeable future.
