Fanatics Stuck at No. 3 as Nebraska Rejects Betting

Nebraska voters rejected online sports betting 54.5% to 45.5% on Tuesday, blocking a market Fanatics spent months trying to open. Michael Rubin now faces a steeper climb toward his stated goal: making Fanatics the No. 1 sportsbook in America.

Rubin has been blunt about his position. "For Fanatics, we believe we need to be number one in whatever we do," the founder and CEO said in an October interview on CNBC's Squawk Box. In betting, he admitted, "We're a distant No. 3 in the betting and gaming business. We don't like that."

What did Nebraska decide?

Initiative 441 failed with 54.5% opposed against 45.5% in favor, according to unofficial returns. Fanatics was among at least four major sportsbooks that supported the measure, alongside BetMGM, DraftKings, and FanDuel. FanDuel and DraftKings supplied most of the nearly $22 million campaign, according to Covers. The outlet estimates mobile betting in Nebraska could not launch before 2029.

The loss removes one growth state from Fanatics' map. It also signals voter resistance in the remaining states without legal online betting.

Why does Congress matter now?

Nationally, Democrats are projected to win control of both the Senate and the House, according to AP projections. That matters for Rubin's newest product. Fanatics Markets, a prediction-market platform launched in December 2025, competes with Kalshi and Polymarket, and those platforms are drawing fire from both parties.

Sen. Elizabeth Warren, who could lead the Senate Banking Committee under a Democratic majority, joined Republican Sen. John Curtis in an October letter raising concerns about election-related event contracts. The new Congress takes office in January.

How far behind is Fanatics?

Fanatics is approaching a 10% share of U.S. sports betting just over three years after launching its sportsbook, according to Covers. FanDuel and DraftKings together hold 75% to 80% of the market. To close the gap, Fanatics is weighing an increase in marketing spend from $350 million to as much as $1 billion in 2027.

Rubin is betting on loyalty to close the gap. He told CNBC that Fanatics has 45 million members in its loyalty program, which he called the biggest in sports. He also acknowledged the next couple of years will be "very hard" as sportsbooks and prediction markets chase the same customers.

Asked about consolidation with competitors, Rubin was noncommittal. He was more certain about legal fights: he said Fanatics has faced six lawsuits, most of them dismissed. "My attitude is, we're not going to negotiate with people. We're going to spend whatever it takes so that people know, we're going to win because we are the best at what we do," he said.

How did Rubin build Fanatics?

Rubin's entrepreneurial streak started early. As a teenager, he ran ski shops, and after dropping out of Villanova University, he resold ski equipment. Proceeds from the shops went into KPR Sports, which traded in name-brand merchandise.

That business became Global Sports, then GSI Commerce, which eBay bought for $2.4 billion in 2011. Fanatics emerged from that deal under Rubin's control and became his sports base. Fortune profiled its licensed-merchandise model in 2018, when league rights gave it an edge over Amazon.

Since then, Fanatics has built out collectibles, betting, and live events. Its annual Fanatics Fest in New York puts merchandise, trading cards, and betting in one room, with appearances by stars such as Derek Jeter, Tom Brady, and LeBron James.

What else does Rubin do?

Rubin's reach extends past business. After campaigning with Jay-Z for rapper Meek Mill's release from prison, Rubin and Meek co-founded the REFORM Alliance in 2019 to change probation and parole laws. REFORM says it has helped pass 23 bipartisan laws in 12 states, and its 2023 and 2025 Casino Night galas raised more than $44 million combined. It also runs events connecting young people affected by the justice system with pro teams such as the Philadelphia Eagles.

Fanatics, meanwhile, became Make-A-Wish America's first Official Sports Partner in 2023, and Rubin sits on the board of the Fanatics Foundation.

With Nebraska off the table until at least 2029, Fanatics' climb from No. 3 runs through states that have already said yes, and through prediction markets that Washington is only starting to police.