Fanatics Invests $50M to Expand New York Operations

Fanatics is investing more than $50 million to expand its Manhattan office and create 300 jobs in New York, with Governor Kathy Hochul announcing the move on February 24 alongside performance-based state tax credits worth up to $5 million.

The New York Expansion

The investment adds 95,000 square feet to Fanatics’ existing space at 95 Morton Street, where the company currently employs around 650 staff. The expanded footprint is designed to support growth across technology, product, corporate, and operations functions. Empire State Development is backing the project through its Excelsior Jobs Program, which ties tax credits to job creation targets.

“By supporting Fanatics’ 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.” — Governor Kathy Hochul

Fanatics Executive Vice President and CFO Glenn H. Schiffman pointed to New York’s position within the company’s broader growth strategy.

“New York City plays an important role in growing our global platform by offering unmatched access to talent and connections across sports and entertainment.” — Glenn H. Schiffman, CFO, Fanatics

Revenue Ambitions and Betting Losses

The office expansion comes as CEO Michael Rubin has laid out an ambitious revenue target, telling attendees at the National Retail Federation’s Big Show that Fanatics could reach $50 billion in annual revenue within the next 5 to 10 years. The company is currently valued at $13 billion and remains privately held, with Rubin indicating no immediate pressure to pursue an IPO.

Licensed merchandise remains the largest contributor to group revenue at approximately $7 billion per year, followed by collectibles and trading cards at $4 billion. Sports betting and gaming currently generate around $2 billion, though the segment has operated at a loss as Fanatics competes for market share against DraftKings and FanDuel. The U.S. accounts for the vast majority of revenue; international operations generate around $1 billion, with a London trading card store among recent expansion moves.

Prediction Markets and Financial Services

Rubin has signalled two additional growth vectors: prediction markets and financial services. Fanatics entered the prediction markets space in December 2025 through a partnership with Crypto.com, targeting states without legalised sports wagering. A branded credit card launch is planned for spring 2026.

The prediction markets move positions Fanatics alongside Kalshi, DraftKings, and other operators pushing into a segment that is attracting growing regulatory scrutiny at both state and federal level. Whether Fanatics can close the gap on established sportsbook operators while simultaneously building out its prediction markets and financial services verticals remains the central question for the company’s next phase.

Source: Covers.com