August 19th, 2021 3.00pm
Jay-Z is a world-famous rapper, a successful entrepreneur, and Beyonce’s husband, but he’s hardly a name you would associate with gambling. But if everything goes according to plans, that may change soon.
That’s right, Jay-Z may become one of the most prominent names in the growing sports betting industry in the United States.
Getting in on the Action
The Brooklyn-born artist has invested a lot of money in a business venture with Fanatics, with the sole purpose of entering the lucrative sports betting market in the state of New York. However, we’re yet to see whether his plan will play out as he hopes.
Based in Miami, Florida, Fanatics is not a familiar name when it comes to sports betting as it is primarily focused on manufacturing sports merchandise. In a recently posted statement, its spokesperson announced they were getting ready to expand into the lucrative world of wagering on sports.
All they needed to make their plans become a reality was a serious financial investment. That’s where the famous rapper stepped in. He provided a cash injection worth around £235 million. These funds were used to finance the expansion effort and the new business venture.
There’s one interesting thing about it: there are still no guarantees it will be successful.
Problems with Getting the License
Before the new business project funded by Jay-Z is ready to offer sports betting services to customers in New York, the company will need to obtain a license. But doing so could be an arduous task since only a handful of them are available. According to available information, Fanatics has already submitted a license application with the New York Gaming Commission.
It remains to be seen whether the company’s efforts to get the licence will be successful. We should point out it will face stiff competition, as some of the leading names in the sports betting business are also eyeing a move into New York’s market. In practice, this means that many applications are going to be rejected.
The list of applicants set to go up against Fanatics and Jay-Z include some of the most reputable names in the business, such as FanDuel, theScore, FOX, and Bet365. It’s interesting to mention that FanDuel is not applying independently, but together with companies like DraftKings, BetMGM, and Bally’s.
Slim Chances of Succeeding
Considering the competition Fanatics is facing, many don’t believe that Jay-Z’s application bid will be successful. Particularly as the state’s regulatory body plans to grant only two licences. Not everything is lost, though, as the Gaming Commission has already pointed out that it could accept as many as four applications, depending on the circumstances.
Jay-Z has already proven he is a successful entrepreneur, so it’s not as if he’s going in blind. The rapper, whose real name is Shawn Carter, owns a chain of sports bars, 40/40 Club, which offers its services to customers in Nevada and New Jersey.
Will his latest business endeavour be equally successful? We’ll have to wait for an answer, but one thing is sure: if his bid goes through, Jay-Z could become a massive name in the state of New York sports betting market.