NY Governor Announces Fanatics Expansion, Bringing 300 New Jobs to New York City

In a press release, New York Governor Kathy Hochul announced that sportsbook operator Fanatics will expand its New York City operations, projecting the creation of more than 300 new jobs over the next five years. 

As part of the expansion, Fanatics has received a $50 million investment to revamp its Manhattan office to better suit its growth plans. On top of this, the city’s development organization, Empire State Development, will also provide Fanatics with up to $5 million in refundable tax credits with the Excelsior Jobs Program. 

“Fanatics is one of the most innovative companies in the global sports and digital commerce economy, and their decision to grow here in New York sends a powerful signal that our state remains the premier destination for companies building the future,” Governor Hochul said. 

“By supporting their significant investment and the creation of 300 new good-paying jobs, we are reinforcing New York City’s role as a global hub for technology, digital commerce, and creative industries and ensuring that the jobs of tomorrow are created right here at home.”

In addition to Fanatics, other companies, such as the cryptocurrency exchange firm Kraken and the payment service provider PayPal, have chosen to relocate or expand in the New York sports betting market, creating over 2,500 jobs for the state and generating more than $180 million in private investment. 

“New York City plays an important role in growing our global platform by offering unmatched access to talent and connections across sports and entertainment. From continuing to grow our presence in the city to bringing fans together at events like Fanatics Fest — the world’s #1 fan festival which is returning to the Javits Center for its third year in July, New York is key to how we serve fans around the world,” added Glenn H. Schiffman, Fanatics EVP and CFO.

Fanatics Launches Prediction Markets

Prior to their New York City expansion, Fanatics also became one of the major US sportsbook operators to dabble into the world of prediction markets, partnering with derivatives exchange Crypto.com. 

The launch happened back in December, with Fanatics announcing that its Fanatics Markets would be available in 24 states and would offer a range of contracts, including sports, finance, and entertainment.

“For years, Fanatics has given fans new ways to enhance their fandom through team merchandise, collectibles, tickets, gaming, events and more,” Fanatics CEO Matt King said in a statement. “Now, with Fanatics Markets, we’re giving fans a safe, and intuitive way to engage with the moments that move sports and culture, and to pick a side and profit along the way if their prediction is correct.”

The launch did not come without industry scrutiny, however. Fanatics followed fellow sportsbook operators DraftKings and FanDuel in leaving the American Gaming Association (AGA) over the association’s stance on prediction market apps.

The AGA has since remained firm in its outlook on the regulation of prediction markets, most recently reaffirming its view that sports-event contracts should be regulated by state gambling regulators rather than the Commodity Futures Trading Commission at the federal level.