Fanatics Raises PointsBet Bid To $225 Million, DraftKings Bows Out
It appears that Fanatics has won the bidding war with DraftKings to acquire PointsBet Sportsbook. Initially, the first Fanatics bid of $150 million to claim PointsBet’s U.S. operations seemed set in stone until DraftKings outbid Fanatics with a $195 million offer for PointsBet. PointsBet shareholders were considering the offer from DraftKings, leading to Fanatics increasing their initial offer by 50% to $225 million.
This move likely solidifies that Fanatics will complete the acquisition of PointsBet Sportsbook.
DraftKings Bows Out Of PointsBet Acquisition War
DraftKings has thrown in the towel, following this new bid by Fanatics. The popular sports betting operator released a statement confirming the company has ended its pursuit of PointsBet.
“DraftKings Inc. (Nasdaq: DKNG) today announced that the company is no longer pursuing the acquisition of the U.S. business of PointsBet Holdings Ltd. (“PointsBet”),” reads the statement from DraftKings. “The company thanks PointsBet for their time and access over recent weeks.”
The PointsBet Board of Directors has unanimously recommended its shareholders approve the increased proposal from Fanatics. If approved, Fanatics will claim all of PointsBet’s U.S. operations including sports betting technology and market access.
PointsBet will meet on June 30 during the next shareholder’s meeting. This is where the vote will take place. All signs point to the acquisition being approved and PointsBet U.S. being merged into Fanatics Betting and Gaming.
PointsBet Looking Ahead
PointsBet had been aiming to offload its U.S. operation after failing to gain major market share compared to other sportsbook giants such as DraftKings, FanDuel, and BetMGM. The company announced the sale of its operations earlier in 2023.
Fanatics was the first major player to pursue the operation. While known as the largest sports apparel outfit on the market, the company is aiming to leverage its user base into a prominent sportsbook. The PointsBet acquisition would help hasten the process for Fanatics.
Fanatics only holds licenses in Maryland, Ohio, Massachusetts, and Tennessee. PointsBet can aid Fanatics in bringing its sportsbook to major markets like New York, New Jersey, Illinois, and Pennsylvania. Lawmakers in New York have already discussed Fanatics’ potential target of a NY launch by the 2023 NFL season.
“Published reports indicate they have a goal of the start of the upcoming NFL season for Fanatics to assume control of the PointsBet entity, with PointsBet anticipating a shareholder vote on the deal in late June,” said Brian O’Dwyer, New York State Gaming Commission Chairman.
Should the deal be approved later this week, the timeline for a New York launch of Fanatics operation becomes a reality.