Andrea Ellis has been appointed Chief Financial Officer of Fanatics Betting & Gaming.
Source: fanatics
Fanatics are one step closer to launching a much-anticipated sports gambling division, nearly five years after the Supreme Court overturned a rule preventing states from legalizing bets on sporting events.
The sports platform and e-commerce company, which is valued at more than $27 billion, said Tuesday it has appointed Andrea Ellis to be the chief financial officer of its betting and gaming division. Michael Rubin, CEO of Fanatics, said last week that the company expects to launch the unit in January.
Fanatics are entering a crowded market in an uncertain economy at a time when some executives say it is time for consolidation. However, Robin is betting that the company’s e-commerce success will translate into sports betting clients.
Ellis brings technology, product, and process expertise to the die-hard executive team. I worked as a CFO at Lime, the largest stock company for electric bikes and scooters, for the past two years. Previously, I worked with the owner of Burger King Restaurant brands.
At Fanatics, the company said, it will be tasked with expanding the new division and providing strategic and operational leadership.
She will report to Matt King, CEO of Fanatics Betting and Gaming, who was previously the CEO of FanDuel. “We are delighted to welcome Andrea to our team as we approach the launch of a new and dynamic sports betting and online gaming product for the masses,” King said.
The January launch will coincide with the highly profitable NFL playoffs. As the football season begins next fall, fanatics expect to be ready and operating everywhere it is legal to do business.
“We’re going to be in every major state other than New York, where you can’t make money,” Rubin said at the Sports Business Journal’s World Sports Conference event. Last fall, fanatics applied for a New York mobile betting license, but were not selected.
Robin predicts that sports betting and other business segments for fanatics “could reach $8 billion, even in the next decade, in profits.”
With more than 50 sports betting operators emerging in recent years, led by flutterowned by FanDuel, kingsAnd the Caesar and BetMGM (owned by MGM Resorts And the Contain)The fanatics are late to the party. The struggle for market share is intense, and often the first sportsbooks to get a license say they see a first mover advantage.
FanDuel CEO Amy Howe told CNBC at the World Game Show this month that she believes it is only a matter of time before the industry is integrated.
“It is not unreasonable to think that the first two or three [operators] It will lead somewhere between 60 and maybe 70 percent of the market.”
Size matters, said Jason Robbins, co-founder and CEO of DraftKings.
“I think you’ll continue to see the benefits of expanding the way Amy does [Howe] The company and my business are becoming more and more visible with more countries being rolled out and more revenue coming in from the industry.”
Size and scale make the fanatics a formidable competitor in the future, even in the eyes of current market leaders. With his extensive business network and fanatical client database of 94 million, Robin was able to raise an additional $1.5 billion in March with investments from Fidelity, BlackRock and Michael Dell.
Fanatics plan to leverage her network by using the loyalty program across all of her business, according to Robin: “You buy merchandise? You excited to play. You gamble? You excited to get collectibles.”
“So our patience saved us money,” said Robin. “I’d rather let everyone else spend their minds and then have to make money, then get a big checkbook and spend the money when no one else can.”
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