Empire State of Mind: Jay-Z Partners With Fanatics Sportsbook for New York Bid
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Jay-Z is in an Empire State of Mind with his recent partnership with Michael Rubin’s Fanatics. The New York State Gaming Commission (NYSGC) is currently considering several bids for sports betting operation licenses in the state. Fanatics made a bid for a sportsbook and formed a new Fanatics Betting and Gaming Entity which Jay-Z will be the vice-chairman. The redacted documents said that Jay-Z and Roc Nation could help Fanatics “attract new customers, engage existing sports bettors, and expand the overall footprint of the Fanatics sportsbook.”
About Fanatics
Fanatics is an American online retailer of “licensed sportswear, sports equipment, and merchandise”. Michael G. Rubin founded Fanatics in 1995 and the company’s headquarters are in Jacksonville, Florida. Subsidiaries of Fanatics include Lids, Majestic Athletics, Kitbag, and more. Rubin is hoping to expand the company beyond sports merchandise and apparel into gaming, ticketing, and media. As part of its efforts to expand, Fanatics secured $325 million from investors including Jay-Z and Roc Nation. Fanatics is now valued at $18 billion.
Rubin hired Matt King as the CEO of Fanatics Betting & Gaming. King was formerly the CEO of FanDuel, one of the most successful sports betting operators in the United States. The Fanatics group is bidding against a host of strong competition including a combined effort between FanDuel, DraftKings, Bally’s, and BetMGM. Fanatics Sportsbook is not yet live in any American state and New York would be its first location.
About Jay-Z and Roc Nation
Shawn Corey Carter, professionally known as Jay-Z, is an acclaimed rapper and businessman who has a net worth of $1.4 billion. Jay-Z has won over 250 awards including 23 Grammys on 80 nominations. Jay-Z has also founded the 40/40 Club, a luxury sports bar chain, Rocawear, a clothing retailer, and Project Panther Bidco, a holding company of Aspiro which is a Swedish technology and music streaming firm.
Jay-Z also founded Roc Nation, a “full-service entertainment company, inclusive of artist and athlete management, label, publishing, touring, film/TV, and new ventures.” Roc Nation’s music label includes critically-acclaimed artists such as Alicia Keys, Shakira, Rihanna, J. Cole, Meek Mill, and more. Roc Nation Sports also represents a handful of athletes including LaMelo Ball, Kyrie Irving, Romelu Lukaku, Jaire Alexander, Robinson Cano, and C.C. Sabathia.
Next Steps
The inclusion of Jay-Z on the Fanatics Sportsbook bid provides value in a number of areas. The NYSGC is valuing bidders who can provide additional marketing and integration to the sports betting space, which Roc Nation can accomplish. Diversity is also an important factor in the bid process, and Jay-Z is the only African American investor to appear on the gaming licenses submitted to New York. Jay-Z is a native New Yorker and Roc Nation is headquartered in New York City, so the Fanatics bid will have deep roots in the city.
The NYSGC received bid applications last Monday from a number of interested parties and will not undergo a lengthy review process to determine the winning bids. New York law requires four customer-facing brands or skins between the winning platform providers, so Fanatics would likely be joining other platforms in the state. The winners of the sports betting licenses will be announced in December 2021 with a target launch ahead of Super Bowl LVI in February 2022.
