Fanatics as Shareholders of Pointsbet

The approval of Fanatics’ $225 million deal with Pointsbet to become a major shareholder, helping to move the sportsbook along into a number of major sports betting states over the next few months. 

Fanatics currently only accepts sports wagers in four states, but the purchase will give more access to 15 plus states within the United States. The board unanimously, with 99% of shareholders votes, approved the improved deal after DraftKings failed to meet the deadline on Melbourne time. 

Why This Is Happening

The acquisition of the U.S. businesses of Pointsbet is a pivotal moment for Fanatics Betting and Gaming because it will help to accelerate the growth of the company in legal online sports betting, advance deposit wagering, and iGaming markets in the United States. 

Pointsbet was able to achieve levels of success in the States. In fact they  became the seventh largest sports betting company out of more than 60 online licensees, but were finding it difficult to compete with the bigger corporations financially. 

With the intent to continue to operate and thrive in the U.S. it was important for them to find a company that aligned with the goals and attributes of 

Future For Pointsbet

Pointsbet to maintain the fanbase they currently have. Fanatics was able to meet these concerns with flying colors and arrived with their own brand identity and large customer base. 

Pointsbet was competing with DraftKings and FanDuel, two large companies that had huge advantages since they started with a large customer database curated from fantasy sports. 

This was hard enough to compete with for Pointsbet as they had to fight for their own customer base along with competing financially with two giants in the industry. Combined the two companies hold more than 70% of the legal sports betting market over the past 12 months. 

Fanatics Background 

Fanatics came about in January with the opening of a Maryland retail sportsbook at FedEx Field, the home of the Washinton Commanders. 

After the ecommerce merchandising took off the company decided to launch an online sportsbook this past spring with bets testing in Tennessee and Ohio along with limited betting in Massachusetts and Maryland. 

Their capital raised $700 million in December helping to increase the valuation of $31 billion. Michael Rubin the CEO of Fanatics has stated the goals of the company to become the largest sportsbook in the U.S. market. 

Fanatics and Pointsbet

The first leg of the deal with Pointsbet plans to be completed by August of this year, with Fanatics gaining the rights to acquire the entities that own and operate Pointsbet’s  business in at least three states. 

Fanatics already has plans to occupy prominent states in the sports betting industry such as New York, Illinois, and Pennsylvania by the start of the NFL regular season. 

Pointsbet will continue to maintain the brand in Australia, Canada, and India; they came onto the scene by differentiating themselves from competitors by offering a novel betting option in which the closer a person’s prediction was to the actual result the more they could win with the reverse also occurring when the person loses. 

Conclusion

The approval of Fanatics’ $225 million deal with Pointsbet marks a significant milestone for both companies and the sports betting industry as a whole. This strategic acquisition positions Fanatics as a major player in the rapidly expanding legal online sports betting market in the United States. 

By gaining access to a broaader range of states and leveraging Pointsbet’s success and expertise, Fanatics is well positioned to achieve its goal of becoming the largest sportsbook in the U.S. markets. 

The deal also addresses Pointsbet’s financial challenges and ensures the continuity of their brand in key international markets. As the first leg of the deal is set to be completed by August 31, sports enthusiasts and bettors can anticipate exciting developments and increased opportunities for legal sports betting in various states. 

With the combined forces of Fanatics and Pointsbet, the future of the sports betting industry looks promising, offering an enhanced betting experience for fans worldwide and further stimulating the growth of the market. 

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