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PointsBet is officially selling its US sports betting business to Fanatics.
Early Friday morning, 99.16% of PointsBet shareholders approved the $225 million sale, shifting the process to US sports betting regulators. According to experts, the sale does not include any of PointsBets Australian assets.
The deal is expected to close in 2024.
Busy week for PointsBet
Fanatics offered roughly $150 million in cash in May to acquire PointsBet. However, the company was forced to increase its offer by 50% to outbid DraftKings, which made a $195 million offer earlier this month.
In a statement posted by Legal Sports Report, Fanatics said:
“We are thrilled that the shareholders of PointsBet Holdings Inc. voted to approve our acquisition of the US businesses of PointsBet. We moved decisively to close the deal, and we look forward to working with our friends at PointsBet Holdings Inc. to finalize the remaining acquisition details.
“This is a pivotal moment for Fanatics Betting and Gaming that will accelerate our growth in the legal online sports betting, advance deposit wagering and iGaming markets in the United States. Pending regulatory approvals in the various states in which PointsBet operates, we will have more details to share in the coming weeks on how the acquisition of PointsBet US businesses will bring to life our unique vision for Fanatics Betting and Gaming.”
Following the announcement, PointsBet Chairman Brett Paton said the US staff was in good hands. “Fanatics identified in PointsBet many of the attributes needed to be successful in entering the online market,” Paton said.
“In turn, Fanatics has a strong brand and an extensive sports customer base with a fanatical interest in sports.”
Paton said PointsBet has managed to carve out a place in the online sports betting market despite dominance from FanDuel and DraftKings.
“We doubt anyone expected FanDuel and DraftKings to become effectively a sports betting duopoly. It points to the huge incumbency benefits these companies have in the US market.
“However, we are one of the only international operators to have gained a worthwhile market share. There are over 60 online sports betting operators in the market. Only seven brands, including PointsBet, have a market share of more than 1%, with the remaining 53 companies competing for the rest.”
Fanatics still needs regulatory approval
If US regulators approve the deal, this will be transformative for Fanatics, which is still in the early stages of growing its sports betting brand.
PointsBet is the seventh-largest US sports betting operator and operates in 15 states.
“Our US team will have a strong future as part of the Fanatics Betting and Gaming group and PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet,” Paton told CNBC.
