Fanatics is set to significantly increase its advertising budget for its gambling division, aiming to reach nearly $1 billion by 2027.

This move is part of CEO Michael Rubin’s strategy to compete more effectively against leading players like DraftKings and FanDuel, as reported by Bloomberg. For this year, the company anticipates spending about $350 million on gambling-related advertising.

During an interview in his Manhattan office, Rubin noted that Fanatics currently holds around 10% of the U.S. sports betting market, placing it third behind DraftKings and FanDuel. His ambition, however, is to ascend to the top spot. Rubin emphasized the company’s commitment to being a leader in all its endeavors, stating,

“We’re very focused on being number one in everything that we do.” He added that they plan to invest more in marketing next year than initially planned, asking, “How do we close the gap, and how do we really grow our market share?” Since entering the sports gambling sector in 2023, Fanatics projects total revenue for the year to be close to $14 billion, a remarkable 40% increase year over year.

The gambling unit is expected to contribute approximately $2 billion to this total. Across all its segments—ranging from sports merchandise to trading cards, in addition to gambling—Fanatics aims to generate $2 billion in free cash flow this year, resulting in around $1 billion in net cash with a completely debt-free balance sheet.

Rubin pointed out that being a private company provides a significant advantage, as it allows Fanatics to reinvest profits from its successful divisions into the gambling sector without the pressures faced by publicly traded competitors. He made it clear that there is no immediate or medium-term pressure to take the company public.