Derek Wright, the Senior Vice President of trading at Fanatics, is set to leave the company after a dynamic two-year tenure. Wright, who joined Fanatics in May 2022, was instrumental in spearheading the company’s foray into the sports betting sector, particularly with the launch of its sportsbook offering which debuted in January 2023.
Fanatics has made significant strides in the sports betting industry since its debut, especially with the historic launch of its retail sportsbook at the then-named FedExField in Maryland, enabling Fanatics to become the first sports betting operator to open a retail book within a National Football League stadium.
The expansion of Fanatics has been steadfast and strategic, allowing the company to solidify its presence across the United States. Following the sportsbook’s launch, Fanatics took the ambitious step of launching its online casino in November 2023, thereby diversifying its betting and gaming offerings.
Wright’s successful run at Fanatics also saw the acquisition of PointsBet’s US business, with Fanatics Betting & Gaming (FBG) making a notable $225 million acquisition. This strategic move allowed Fanatics to considerably widen its market reach, particularly as PointsBet had previously established operations in key areas across the nation.
Expressing his sentiments on his departure in a LinkedIn post, Wright shared his gratitude for the opportunity to contribute to Fanatics’ growth, stating he was “incredibly grateful” for the chance to help build its betting and gaming division. He also touched on his plans to “recharge the batteries” by taking time off to spend with his family before embarking on his next venture, concluding his message with a vote of confidence for his former team.
The finalization of the PointsBet takeover marks a culmination of Wright’s efforts, as Fanatics went live in New Jersey just last week, signaling its official onboarding of PointsBet’s operations. With its launch in New Jersey, Fanatics asserts that its sportsbook is now accessible to around 95% of the US’s online market – a testament to the rapid and vast expansion of the company’s footprint in the sports betting landscape.
This move is not only strategic but highly symbolic for the company, as New Jersey represents an influential market for online casino operations. The client base from PointsBet has been seamlessly integrated into the new system, with users transitioning without the need for new account creations. Fanatics’ entry into New Jersey is pivotal, especially considering the state’s legal online casino market, alongside its previous online casino launches in Michigan, Pennsylvania, and West Virginia.
The acquisition deal for PointsBet’s US operations initially announced at $150 million escalated due to a competitive bid of $195 million from DraftKings, ultimately leading Fanatics to seal the deal in June 2023.
The sports betting landscape is increasingly competitive and fast-evolving. Fanatics’ aggressive moves – from the opening of its first retail sportsbook inside an NFL stadium to the acquisition and integration of a rival’s US business – show a commitment to securing a significant market share in this burgeoning sector.
Wright’s departure from Fanatics marks the end of a singular chapter in the company’s history, yet his contributions have laid a strong foundation for its future endeavors. As Fanatics’ betting and gaming division continues to grow, it stands on the precipice of a new era of strategic expansion with the ambition to dominate the sports betting domain in the United States.
