It’s official, PointsBet has managed to find its buyer, as Fanatics is reportedly purchasing the sportsbook for $150 million. PointsBet initially put its U.S. operations up for sale back in April. It struggled to gain market share in the competitive industry, but it didn’t take long for a major player to swoop in for the spoils.
PointsBet was an attractive prospect as the operator holds market access to 17 states. Fanatics, which is new to the sports betting industry, can now launch its operations in these markets.
Fanatics PointsBet Acquisition Details
The acquisition will see Fanatics gain PointsBet’s sports betting and iGaming assets in their U.S. business. Additionally, the advanced deposit wagering businesses will now be under Fanatics. PointsBet properties such as Banach’s in-play technology will also be granted to Fanatics per the acquisition.
Currently, Fanatics holds licenses for Maryland, Massachusetts, Ohio, and Tennessee. The PointsBet purchase will see Fanatics able to offer its sportsbook to 14 more states. This includes major markets like New York, New Jersey, Illinois, and Pennsylvania.
Keep in mind, the recently-implemented operator initially aimed to gain entry into the Empire State but didn’t receive a license.
Markets Fanatics Can Enter Following The Acquisition:
- New Jersey
- New York
- West Virginia
A part of the acquisition revolves around Fanatics inheriting the NBCUniversal marketing deal that PointsBet holds. This partnership sees PointsBet advertising on local broadcasts through NBC. The initial deal was renegotiated, as PointsBet moved to decrease ad spend.
It’s a five-year sponsorship agreement that will now see Fanatics Sportsbook present during NBC broadcasts. Local TV games across NBC channels will use Fanatics odds following the completion of the deal.
What Is Next For PointsBet
PointsBet will hold a shareholders meeting in June to vote on the deal. Since PointsBet is an Australian company, its shares are traded in Australia. This is where the meeting will be held. PointsBet will only be offloading its U.S. business through this deal, keeping its Australian business going forward.
The company initially attempted to sell its Australian operations in 2022 and was nearly acquired by Betr. That deal was ultimately stopped as PointsBet backed out. The company then shifted its focus to offloading its U.S. operations.
“We believe further industry consolidation is inevitable,” PointsBet spokesman said to The Australian Financial Review. “We’ll position PointsBet to take advantage of movement in the sector.”
Determining Fanatics’ Launch Strategy
Fanatics’ plan remains to slowly launch its sportsbook, and the PointsBet deal provides them with more markets to do so. There has been no official full launch of the sportsbook, with beta testing in key markets kicking things off instead.
“This is a 10-year journey,” Matt King, the CEO of Fanatics Betting, said at the SBC Conference earlier this month. “We’re going to move very methodically through that 10-year journey. And by doing that and taking that approach, it allows you to be a bit more considered in your decisions. You can kind of move slower, slightly slower today, in order to move fast later.”
Fanatics is now open only to Fanatics customers using exclusive access codes in Tennessee and Ohio. Once the acquisition is complete, we will see if the company aims for a more aggressive launch path with so many new markets at its disposal.