Jay-Z backing Fanatics’ New York sports betting bid
Rap icon and Roc Nation founder agrees to become vice-chairman and advise on strategic and creative direction of sports merchandising giant
World-famous rap artist and songwriter Jay-Z has been confirmed as the new vice-chairman of prospective New York sports betting licensee Fanatics, in documentation provided to the state as part of its license application.
In his new role as vice-chairman, the multi-billionaire and Roc Nation founder will provide sports merchandising and apparel giant Fanatics with “strategic and creative” direction on the expansion and growth of the Fanatics Sportsbook in New York and across the US.
Documents filed with the New York State Gaming Commission (NYSGC) seen by EGR confirm that Jay-Z’s Roc-Nation company has agreed a strategic partnership with the sports betting brand, which recently recruited former FanDuel chief Matt King as its new CEO.
“Fanatic Sportsbook’s partnership with Roc Nation gives it the ability to reach new audiences as well as the tools to amplify its own marketing messages and consumer experiences,” the firm’s filing stated.
“This will bring new customers into the New York State online betting revenue stream and keeping them there through superior engagement opportunities,” it adds.
The Roc Nation empire includes a record label, clothing line, management company, media relations, publishing company as well as multiple other businesses.
Its roster of media partners includes US rappers as well as Belgian footballer stars Kevin De Bruyne and Romelu Lukaku.
Fanatics, which raised $320m in March, valuing the business at $12.8bn, has also partnered with the Saint Regis Mohawk Tribe in New York’s Franklin County, which will support its sports betting drive, with NYSGC regulators confirming any operator partnering with a local tribe will receive additional consideration.
Fanatics will use Kambi as its main sports betting platform provider but will utilize player account management systems provided by a third company, Strive Gaming.
Application documents confirm Fanatics has agreed a strategic partnership with the US-based firm, which counts Betsson Group as both partner and a 35% shareholder in the business.
Fanatics will face stiff competition in the Empire State, with US sports betting heavyweights lining up to receive a license to operate mobile betting.
In its initial tranche of applications, the NYSGC named six primary applicants, including bet365, FanDuel, Fox Bet, theScore, and Kambi.
New York regulations require platform providers to serve as the primary applicants, which are then obliged to declare all operators they wish to host on their respective platforms.
Fanatics Sportsbook and Penn Sports were submitted as sportsbook partners on one of Kambi’s two applications, while Caesars, Empire Resorts, PointsBet, Rush Street Interactive, and WynnBet were listed on a separate application.
In what has been dubbed a “super bid”, BallyBet, BetMGM, and DraftKings have applied to operate mobile sports betting on the FanDuel platform. Fox Bet, theScore, and bet365 have said they will operate on a standalone basis via in-house technology.
Licenses to operate sports betting will be awarded on or before December 6.
Picture credit: Getty Images/Alberto E. Rodriguez/Stringer