Sports-merchandising company Fanatics Inc. has picked a finance chief for its sports-betting and gambling division ahead of its planned launch early next year.
Jacksonville, Fla.-based Fanatics on Tuesday named Andrea Ellis as chief financial officer of its betting and gambling unit. Ms. Ellis was most recently CFO for about two years at electric-scooter company Lime. Before that, she held senior roles in finance at Restaurant Brands International Inc., which owns brands including Burger King and Tim Hortons.
Ms. Ellis will report to Matt King, the division’s chief executive. Mr. King joined Fanatics last year from rival FanDuel Group, where he was CEO.
Fanatics earlier this year raised $1.5 billion from investors including Fidelity Management & Research Co. and funds managed by BlackRock Inc., giving the company a $27 billion valuation. The company has been working to expand beyond its core business of providing sports merchandise and memorabilia for professional sports teams. Earlier this year, it acquired Topps Co.’s trading-card division, accelerating its growth in the business.
Andrea Ellis, the new CFO of the Fanatics Inc.’s sports betting division. Photo: Fanatics
As CFO of the sports-betting unit, Ms. Ellis will be responsible for helping the business get off the ground. Her priorities in the new role will include building out the financial infrastructure that will allow Fanatics to begin accepting and settling thousands of bets a day, according to Mr. King.
“There’s a ton of work to do around just building the pipeline, the pipework and the piping such that when we do turn on, and we do go live, everything flows,” Ms. Ellis said.
Fanatics declined to share financial forecasts for its sports-betting division, which doesn’t currently generate revenue. The company is currently seeking and has submitted sports-betting licenses in five states, according to Mr. King. It expects to have licenses in 15 to 20 states by the time the 2023 National Football League season begins.
Mobile sports betting as of Aug. 16 has been legalized in 26 states and the District of Columbia, but hasn’t yet launched in five of those states, according to the American Gaming Association.
The industry is currently dominated by major companies including DraftKings Inc. and Flutter Entertainment PLC’s FanDuel. Companies across the sector have spent millions of dollars on marketing to attract customers, but have pulled back on spending in recent months as they aim to improve profitability.
“Everyone is investing in the land grab right now,” said Ryan Sigdahl, an analyst who covers the sector at Minneapolis-based Craig-Hallum Capital Group LLC. Companies looking to add customers not only need to spend heavily to build their brands, but they must also differentiate their offering in an increasingly competitive field, he said.
Mr. King declined to share details about the division’s planned product offering, but said that the industry has room to improve when it comes to consumer satisfaction with sports-betting apps. “We’re going to look to, frankly, give customers what they want,” he said.
Write to Kristin Broughton at Kristin.Broughton@wsj.com