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Fanatics Betting and Gaming has officially closed its previously announced acquisition of PointsBet businesses in the US. Illinois was the final state in this ongoing process, which started in May 2023 when Fanatics announced its acquisition plans.
PointsBet Holdings Limited (ASX: PBH) confirmed receipt of the final installment of the headline purchase price of $225 million and has transferred the remaining entities to Fanatics. The transaction includes all the remaining entities:
- PointsBet’s US sports betting
- Advance-deposit wagering
- iGaming operations
- Banach Technology
- A copy of the PointsBet platform
- A license to use that proprietary technology platform
The completion came after the company’s expansion, where the Fanatics Sportsbook app went live in Kansas:
“The acquisition of the US businesses of PointsBet has super charged our expansion plans. In addition to our migration of PointsBet customers and technology to the Fanatics Sportsbook and Casino platform, we have also added an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business.”
The release further states that more than 200 PointsBet employees will join Fanatics in various roles, including Mark Hughes and Aonghus Mulvihill joining the executive leadership team.
Fanatics won the bidding war against DraftKings
On May 15, Fanatics initially offered to purchase PointsBet for $150 million. About a month later, DraftKings put in a non-binding offer of $195 million cash to buy PointsBet’s US assets.
Ten days later, Fanatics increased a bidding offer to $225 million. According to PointsBet’s press release regarding the sale, DraftKings failed to submit a new offer, although PointsBet gave it additional time.
PointsBet shareholders then accepted Fanatics’ increased offer. The deal said it would give Fanatics access to 15 US states that PointsBet operated in at the time.
Despite PointsBet’s presence in those markets, the company’s US division struggled in terms of online gambling market share. That was one of the main reasons the company decided to sell its US operations.
