Fanatics chief predicts $7bn US betting marketing spend in 2026
Michael Rubin told CNBC he expects industry-wide marketing outlay to more than double next year as sportsbooks and prediction markets chase the same bettors.
Fanatics chief executive Michael Rubin expects American sports betting operators to collectively spend roughly $7 billion on marketing next year, more than double the sum he puts on last year's total, as the fight for customers intensifies, Legal Sports Report reported.
Speaking on CNBC's Squawk Box on Wednesday, Rubin said the sector spent close to $3 billion on marketing last year and predicted the figure could reach $7 billion in 2026, calling the competitive landscape unlike anything the industry has previously seen.
He forecast that the years immediately ahead would be tough for operators generally, though he argued Fanatics is better placed than most rivals to absorb the cost because its betting arm is underpinned by separate merchandise and collectibles divisions that remain highly profitable.
Rubin told CNBC those two businesses are expected to generate roughly $5.5 billion and more than $7 billion in revenue respectively this year, and said the cash they throw off gives Fanatics room to keep funding its betting and gaming unit even while that unit runs at a loss.
Fanatics' own betting and gaming marketing budget is set to rise sharply as a result. Rubin said the company spent around $350 million on marketing in that business this year and expects to lift that figure toward roughly $1 billion in 2027, as it tries to close the gap on the market leaders and establish itself in prediction markets.
Rubin pointed to the financial strain now facing listed rivals, noting that DraftKings shares are down about 48% so far this year and that shares in FanDuel owner Flutter Entertainment have fallen around 65% over the same period.
He described the market as having shifted from a straightforward two-horse contest between DraftKings and FanDuel into a five-way scrap that now includes Fanatics, Polymarket and Kalshi alongside established operators such as BetMGM and bet365.
Fanatics is approaching 10% market share, according to Rubin, though he said the company remains an unhappy third-place finisher. CNBC's own trailing 12-month figures for US online sportsbooks put Fanatics at 6%, well behind FanDuel on 34% and DraftKings on 31%, with Hard Rock on 8% and BetMGM on 7%.
Fanatics' position has been built on its wider sports commerce operation, including a loyalty scheme with 45 million members, and on its 2023-2024 acquisition of PointsBet's US business, which handed the company state licences, an existing customer base and betting technology in one move.
The company is also widening customer protections and rewards. From this week, its Fair Play injury cover will apply to qualifying NFL and NBA bets whenever a player is injured during a game, rather than only in the first half as before. Rubin also highlighted FanCash, the loyalty programme redeemable against merchandise, collectibles, tickets and wagers, which he expects to issue around $2 billion of next year, with 97% to 98% typically redeemed within twelve months.
Rubin said Fanatics intends to promote both features more heavily going forward.
He said prediction markets are reshaping the competitive picture and that he does not expect significant consolidation among the best-funded players any time soon, predicting repeated clashes between rivals over the next few years that explain current pessimism about the sector. He maintained that the business would prove fundamentally sound over a five- to ten-year horizon and that it fits well within Fanatics' broader operation.