Michael Rubin and Jay-Z make splashy move with new Fanatics sportsbook at Ocean Casino Resort

ATLANTIC CITY — At just past noon on the northern tip of the boardwalk, slots are spinning and cocktail waitresses are working the main floor as a stale cigarette fog hovers over the gambling crowd at Ocean Casino Resort.

The real action, however, unfolds inside the circular cavern smack in the middle of the casino, where the brand new Fanatics sportsbook is about to be unveiled. Hip-hop icon Jay-Z, sporting shades and a sleek black suit, descends the ornate staircase trailing Fanatics chief executive officer Michael Rubin, who’s dressed business casual. Moments later, the two men stand side by side as Jay-Z wields a cartoonish pair of scissors for the official ribbon-cutting ceremony.

“What’s the coolest way to cut it?” Jay-Z asks the media throng.

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Philly-born Rubin and his Fanatics empire expanded into the sports betting and gaming industry only a year ago, but it is a market the ambitious 52-year-old entrepreneur hopes to conquer and pair with the rest of his business empire, which includes sports merchandising and trading cards. It doesn’t hurt that Rubin’s business partner in this latest venture is one of the biggest names in music and entertainment, Hova himself.

“We came up with the idea to do this together three years ago,” Rubin told The Inquirer during a break in the Atlantic City festivities, referring to the origin of his and Jay-Z’s business plan. “Look, I’ll tell you the goal I have in mind. I want to be No. 1 in the online sports betting/iGaming market.

“One year later, we’ve already got 5% of that market. We’re growing very quickly. You look at two incredible companies, FanDuel and DraftKings, but everybody else is kind of losing shares. We’re picking up a share every single month.”

Fanatics already has sportsbooks attached to several stadiums around the country, including the first in an NFL venue, Northwest Stadium, home of the Washington Commanders. But the Ocean Resort sportsbook represents a Fanatics footprint in a key demographic: the lucrative New Jersey/Pennsylvania/New York triangle.

New York and New Jersey have consistently boasted the largest sports betting handles (the amount of money individuals wager) year to year, ever since the 2018 Supreme Court decision opened the door to legalized sports betting.

Fanatics is not yet a publicly traded company and figures are not available on how much revenue its sportsbooks generate, but there is no mistaking the impact of having a brick-and-mortar footprint in Atlantic City, particularly because the Pennsylvania Gaming Act prevents retail sportsbooks from being attached to venues like Lincoln Financial Field or Citizens Bank Park. Pennsylvania sportsbooks currently must be in casinos and off-track betting sites. Rubin is bullish on this latest endeavor, although he is quick to underscore that Fanatics’ immediate goal is not largesse in the field.

“We’re not trying to be the No. 1 sportsbook operator from a quantity of books,” Rubin said. “What we’re trying to be is the absolute No. 1 overall operator. The quantity of sportsbooks, less important. The best products, that’s what we want to be focused on.”

To ensure the “best” experience for the betting public, Rubin spared little expense with the Ocean sportsbook launch. In addition to the lavish setting, with LED walls surrounding an elevated bar, and a plush lounge a floor above, bettors at the launch could roll the dice with Jay-Z.

“Who wouldn’t want to gamble with Jay-Z?” Rubin said.

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Attendees at the event on Sept. 15 also watched the Sunday NFL game slate with the “99 Problems” rapper, Rubin, retired NFL stars Dez Bryant and Ryan Clark, and two-time golf major champion Justin Thomas, a Fanatics pitchman.

“I’m trying to spread the word, that’s part of being a [Fanatics] ambassador, and being on the team,” said Thomas, who placed the ceremonial first bet, wagering on his alma mater, the University of Alabama, to win the national championship. “I’m trying to help grow the [Fanatics] brand. Michael is successful for a reason. His creativity never stops. This shows the progression and reach that gaming and sports betting is getting to. It’s a part of sports.”

About the only thing missing was a Jay-Z concert performance. Don’t hold your breath on that one, though.

“I don’t think Jay-Z is having a residency in Atlantic City,” Rubin said. “He’s so successful in business. He’s one of the best businesspeople in the world.”

Jay-Z’s official title is cofounder of Fanatics Betting and Gaming, and his name brings significant clout to the company’s brand. A Jay-Z representative did not respond to a request to interview the rapper about his partnership with Rubin.

But despite Rubin’s deep Rolodex of VIPs in all fields, his core Fanatics mission remains the fan, and giving them the best overall product. Even though Fanatics is new to the sports betting market, the company already has millions of customers through its other businesses.

“Brick by brick. It means you build the best team of people to work with, and then they go get the best customers, one by one,” Rubin said. “The everyday customers, we just keep getting out there and educating customers through the Fanatics brand. But we have 110 million customers. I think we’re the best product on the market today.”

Rubin’s business acumen isn’t going unnoticed among his fellow billionaires.

“He deserves a ton of credit. He made that business into a powerhouse,” Dallas Mavericks owner Mark Cuban said in an email. Rubin was a past guest on ABC’s Shark Tank, where Cuban was a regular panelist.

“This industry’s going to keep growing, and we’re going to grow like crazy,” Rubin said. “We’re doing all the key markets, and this area is super important — you have Pennsylvania, New Jersey and New York, which are three of the most important six or seven markets in the country. We’re the leader in the commerce/merchandise business. We’re the leader in the collectibles business. Here, we’re the underdog. I love being the underdog.

“That’s where we get to do what we do best.”