FanDuel and Fanatics could be very popular IPOs in 2023.

Due to bad market conditions, the number of IPOs dropped in 2022, but this is expected to change in 2023.

If that happens, two of the most anticipated IPOs in any industry, FanDuel and Fanatics, might lead the way back up.

The 71 IPOs that raised at least $50 million last year brought in $7.7 billion, which is 95% less than the record haul in 2021. In 2022, initial public offerings (IPOs) from special purpose acquisition companies (SPACs), like casino businesses, did not do well.

Even though there is a short-term cap on IPOs, market watchers think the excitement will die down soon. If the stock market does well at the beginning of 2023 and the Fed says it will slow rate hikes this year, that is.

FanDuel and Fanatics could do well at their IPOs in 2023.

FanDuel and Fanatics haven’t said when they will go public in 2023. It’s seen as the next logical step for both companies.

Parent company Flutter Entertainment has thought about selling a piece of FanDuel to public investors. FanDuel is the largest online sportsbook operator in the US. In 2022, executive changes, a lawsuit against Fox Corp., and market turmoil made it hard to reach these goals.

The value of FanDuel’s IPO would probably be higher than DraftKings’ $4.91 billion.

Fanatics is worth $31 billion because it raised $700 million last month. Fanatics’ IPO could be the biggest of 2023, but Instacart could be bigger.

IPO for Fanatics:

People in the market expected Fanatics to go public in 2022. Their plans fell through because the market went down and investors lost interest in growth stocks. The Florida company that makes sports gear and runs a sportsbook is said to have talked with investment banks about going public.

Michael Rubin, who started Fanatics, wants to make $100 billion over the next ten years. Sources inside the company say that the goal is to have $10 billion in EBITDA in 10 years.

Not just the IPO of Fanatics is important. Analysts say that the company’s bigger push into sports betting could lead operators to spend more on promotions, which would delay the company’s ability to make money.