Fanatics Betting & Gaming has launched operations in a new Midwestern market.
On Tuesday, Fanatics Sportsbook went live with wagering in Iowa, bringing its total presence to 12 states across America. The expansion of Fanatics comes after the operator completed its purchase of PointsBet’s U.S. business in October 2023 for $225 million.
PointsBet users in Iowa will have their accounts automatically transferred to Fanatics.
The emerging operator will be competing with 16 other sportsbooks in the Hawkeye State that collectively posted a $282.7 million handle in December 2023. The results, which were down from November’s $290 million handle, saw DraftKings emerge as the top operator in Iowa. The Boston-based company reported a $94.7 million handle last December while FanDuel finished with the second-highest handle at $67.5 million. Caesars rounded out the top three at $36.7 million. ESPN Bet, following its rebrand from Barstool Sportsbook, had a $18.8 million handle.
Fanatics undergoing rapid growth
The operator’s debut in Iowa adds to recent launches of operations in new markets.
Last December, Fanatics launched sports betting in Colorado as part of its PointsBet transition. That same month, the operator was approved for a wagering license by the Vermont Department of Liquor and Lottery. Fanatics will join DraftKings and FanDuel in the Green Mountain State.
Despite the growth, Fanatics’ expansion has come at a cost.
DraftKings has filed a lawsuit in Massachusetts District Court against the company’s former SVP of Growth Michael Hermalyn. The former interim GIPHY CRO is accused of developing a plan to steal DraftKings company secrets after he resigned on Feb. 1 to take a role at Fanatics right before Super Bowl LVIII on Feb. 11.
In the suit, DraftKings has alleged that Hermalyn lied about personal leave to meet with Fanatics.