Fanatics to Spend Up to $1 Billion on Sports Betting Ads by 2027, Targets Market Leadership

Fanatics plans to increase its gambling advertising budget to as much as $1 billion by 2027, more than double its 2026 spending, CEO Michael Rubin said, as the company seeks to close the gap on market leaders DraftKings and FanDuel. The company expects to spend $350 million on gambling advertising in 2026, according to Bloomberg. Fanatics holds roughly 10% of the U.S. sports betting market, a distant third behind DraftKings and FanDuel. Rubin said his goal is to reach number one. Total revenue is projected at approximately $14 billion for the year, up 40% year over year, with the gambling unit contributing about $2 billion. Fanatics expects $2 billion in free cash flow and holds roughly $1 billion in net cash with a debt-free balance sheet. Rubin cited the company's private status as an advantage, allowing it to fund gambling expansion with profits from merchandise and trading cards without public-market pressure. He said there is no near- or medium-term plan for an IPO. Fanatics entered sports gambling in 2023 and launched a prediction markets platform in December 2025.