Fanatics’ $31 Billion Valuation Ranks it Among Most Valuable Unicorns

Fanatics, a sportswear and betting firm, is among the most valuable unicorns in the world, but it still has a ways to go before it makes it into the top 10.

As of July 4, Fanatics is valued at $31 billion, according to a new research by Visual Capitalist, placing it 18th among all unicorns worldwide.  Financial jargon for closely held businesses valued at $1 billion or more is "unicorn."  When the $5 billion and $10 billion thresholds are surpassed, it's even more exclusive air.

Fanatics and nearly half of the most valued unicorns in the world are US-based businesses.  Although clothing and collectibles account for the majority of Michael Rubin's company's revenue, its Fanatics Betting & Gaming division is leading the way in the iGaming and online sports betting sectors.

Although Fanatics' $31 billion valuation is amazing, No. 10 Anthropic is valued at $62 billion, meaning Fanatics would need to double in value to break into the top-10 unicorn category.  According to Visual Capitalist, Elon Musk's SpaceX is the most valuable company on the list, at $350 billion.  With an estimated valuation of $500 billion, OpenAI, the second-most valuable unicorn, is the most valuable private firm in the world.

A Few Concerns Regarding the Appraisal of Fanatics

After a December 2022 investment round, Fanatics was valued at $31 billion; yet, a year ago, there were speculations that the firm was considering selling equity to employees for $25 billion.

Reports of Fanatics stock trading in private markets at prices suggesting a $17 billion valuation have been brought to the attention of certain experts.  It's unclear if that's true or simply speculation, but Fanatics would remain in the top 30 unicorns with a $25 billion valuation, while a $17 billion price tag would place it just outside of the top 30.  There aren't any other betting-related businesses in the top 30.

Although Rubin stated in a recent interview that the day will come when the firm is publicly traded, it is evident that the speculations that Fanatics might launch an IPO have subsided.

Some Unicorns in the Gaming Industry

Although Fanatics is not a pure-play gaming firm, there are other unicorns in the sector.  After a $70 million investment round in March, Underdog Fantasy was valued at $1.23 billion, which some industry analysts say indicates the rival PrizePicks is valued at about $2 billion.

Tracxn data released earlier this year indicate only six betting companies, including DraftKings and FanDuel, earned unicorn status.  Fanatics are probably not included in that number, and if prediction market operators are taken into account, it may be higher.

While rival Polymarket is reportedly on the verge of obtaining $200 million at a $1 billion multiple, Kalshi raised $185 million in June at a $2 billion valuation.