PointsBet Board Agrees to Sell Company to Fanatics After Higher Offer

Fanatics has finally reached an agreement with PointsBet shareholders after their bid of $225 million was widely accepted.

PointsBet is an Australian gaming company with operations in the United States. Meanwhile, Fanatics has positioned itself as a high-level manufacturer of sports merchandise eager to capitalize on the rapidly growing U.S. sports betting industry.

The acquisition will give Fanatics direct entry into states where PointsBet has a license to operate, including big markets like New York, New Jersey, Michigan, Pennsylvania, and others.

DraftKings Attempts to Take Over PointsBet Deal

PointsBet, an Australian-based betting company known for its unique PointsBetting system, expanded its business to the United States following the wave of sports betting legalization in the country. In the end, however, the company decided to sell its U.S. operations earlier this year due to stiff competition against a sports betting duopoly controlled by DraftKings and FanDuel.

Fanatics Betting and Gaming, the newly-established betting arm of an American sportswear manufacturer Fanatics Inc., has emerged as the primary bidder to purchase PointsBet in May.

Despite this, the original $150 million bid by Fanatics fell through as DraftKings submitted a $195 million proposal of their own in June, mere days before the deadline. 

DraftKings may have made the last-minute offer as a petty act of retaliation on Fanatics after the two companies failed to merge a couple of years back after the latter backed out of the deal. 

Then again, DraftKings’ decision to enter a race to purchase PointsBet may be just a matter of business, with the company trying to expand further and prevent the emergence of a new competitor. 

Fanatics Ups Its Offer & Gets Board Approval

In the wake of DK’s outbidding attempt, Fanatics had to up the ante to $225 million and re-grab the attention of the PointsBet board. Once the new bid emerged, DraftKings announced that it would not continue pursuing the acquisition of PointsBet.

The PointsBet board has approved the deal but also recommended a shareholder vote. The results of the vote were overwhelmingly positive, with 99.16% of shareholders opting in favor of the proposal.

Now that the arrangement is finally a done deal, all that’s left for the two companies is to set a completion date and put pen to paper.

It’s worth noting that PointsBet is just selling its business in the United States and will retain complete control over its operations in Australia and Canada.

What to Expect With Fanatics Sportsbook

The acquisition of PointsBet marks the final step in Fanatics’ plan to break into the sports betting realm. The endeavor started two years ago when the former FanDuel CEO Matt King joined the Fanatics team.

As an established sportswear manufacturer, Fanatics will have an advantage in promoting its new sports betting product to a massive and loyal sports-oriented customer base to compete with industry leaders.

Fanatics Betting and Gaming (FBG) has already launched its beta app in several states, including Maryland, Massachusetts, Ohio, and Tennessee. Meanwhile, the acquisition of PointsBet will secure access to 13 other states where PointsBet is licensed to operate, with Colorado, Michigan, Pennsylvania, New Jersey, and New York being the most notable ones.

The Fanatics sportsbook will be powered by Amelco software, employed by a few other U.S. sportsbooks like WynnBet, FOX Bet, and PlayUp.

Although the sportsbook is still in its testing phase, many expect it to be a top-shelf product with prominent features like live betting and streaming, early cashouts, 24/7 support, a proprietary rewards program, and more.

Customers in select states can now download the Fanatics app and claim a lucrative welcome bonus consisting of $200 in bonus bets after depositing and laying down their first bet of just $5.