After obtaining PointsBet’s US resources earlier this month, Fanatics is fully prepared to enter the Michigan online casino market. Although Fanatics doesn’t have an online casino running in the state, the operator is expected to expand in a new direction.
PointsBet’s new casino promotion in Michigan expiring in January, however, suggests that the Great Lake State rebrand may not occur until early 2024.
Since the online casino revenue in Michigan is on the rise, Fanatics will be making additional profits once it joins the party. The operator announced its plans on PlayMichigan by stating:
“Fanatics Betting & Gaming is building an online and retail (physical location) sports betting (“Sportsbook”) and online casino (“iGaming”) real-money wagering platform. Fanatics Betting & Gaming launched its first retail Sportsbook in Maryland in January 2023, and in May 2023, launched the beta version of its mobile Sportsbook in Tennessee and Ohio. Fanatics intends to launch and operate its Sportsbook and iGaming platform in additional states in 2023.”
PointsBet launches 150-day Power Hour promotion
As an online operator of Northern Waters Casino Resort, PointsBet sent Michigan players an email announcing a “150 Days of SGP Bonus Bets” promotion.
Starting Aug. 24, PointsBet is providing a bonus bet every day for the next 150 days that players can apply on any same game parlay. The promotion is set to expire in January next year.
Fanatics currently lives in Ohio, Maryland, Massachusetts and Tennessee and plans to expand to 12 other states where PointsBet is operating. As for the Great Lake State, Fanatics still has to receive a license from the Michigan Gaming Control Board.
Fanatics outbid DraftKings to purchase PointsBet
As PointsBet announced in June, its board unanimously approved the sale of its US operations to Fanatics. Fanatics outbid DraftKings to purchase PointsBet by increasing their initial offer from $150 million to $225 million. Although DraftKings raised its bid to $195 million, it failed to submit a new offer.
For Fanatics, the PointsBet acquisition means the opportunity to expand the reach of its betting and gaming division. PointsBet’s non-executive chairman of the board, Brett Paton, said in a G3 Newswire press release:
The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty. Fanatics Betting and Gaming conducted their diligence process and negotiations in a highly professional manner at all times.
The offer to “front end” the additional consideration is an element which we regarded as a welcome and significant benefit to our shareholders.
Subject to shareholder and regulatory approvals, 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.”
PointsBet launched in Michigan in January 2021 in partnership with the Lac Vieux Desert Band of Lake Superior Chippewa Indians as well as the Northern Waters Casino. Fanatics now has to work on reestablishing that affiliation while securing a Michigan online casino license.