Fanatics CEO Michael Rubin is preparing for an increasingly expensive fight for U.S. sports bettors, warning that the next several years could be especially challenging as traditional sportsbooks and prediction markets compete for the same customers.
Rubin said the next few years will be “very difficult” for the industry while appearing on CNBC’s “Squawk Box.” His warning centers partly on what he sees becoming a massive marketing battle. Rubin estimated that U.S. betting and gaming companies spent roughly $3 billion on marketing last year and predicted the overall figure could reach $7 billion next year.
Fanatics may play a significant role in that spending increase. Rubin said the company could raise its betting and gaming marketing budget from approximately $350 million this year to as much as $1 billion in 2027 as it attempts to gain ground on established competitors.
Despite the aggressive spending plans, Fanatics is not yet among the U.S. market leaders. Rubin described his company as a “distant No. 3” and said it is approaching a 10% market share. CNBC’s trailing 12-month U.S. online sportsbook figures instead placed Fanatics at 6%, compared with 34% for FanDuel, 31% for DraftKings, 8% for Hard Rock and 7% for BetMGM.
The competitive landscape is also becoming more complicated as prediction-market platforms pursue sports customers alongside licensed sportsbooks. Rubin specifically identified Polymarket and Kalshi when discussing a field that also includes FanDuel, DraftKings, Fanatics, BetMGM and bet365.
Advertising data illustrates how quickly that part of the market has changed. The American Gaming Association reported that digital ad impressions for online sportsbooks fell nearly 14% in 2025, while advertising for sports betting through prediction markets increased sharply. Through May 15, 2026, prediction-market ad impressions were already 72% higher than their total for all of 2025.
More spending does not necessarily mean operators will have an unrestricted path to customers. Sports betting advertising continues attracting attention from consumer advocates, regulators and lawmakers. In June, Sens. Richard Blumenthal and Katie Britt introduced legislation designed to prohibit digital platforms from targeting minors with sports gambling advertisements.
The Responsible Online Gaming Association also released a marketing and advertising code in August that establishes standards for online gaming promotions, including requirements that marketing be designed exclusively for audiences of legal gambling age.
For Fanatics, the coming spending battle is backed by businesses outside sports betting. Rubin said Fanatics expects its collectibles operation to generate $5.5 billion in revenue this year, while merchandise revenue is on pace to surpass $7 billion. He said profits from those businesses give Fanatics additional flexibility to invest in betting and gaming.
Rubin’s outlook therefore carries two distinct messages. He remains confident in sports betting over a five- to 10-year horizon, but he is not minimizing what could happen before then. With sportsbooks and prediction markets simultaneously fighting for customers, his forecast points toward a period when gaining market share may become considerably more expensive, even for some of the industry’s largest companies.
