In a significant move that marks the conclusion of a strategic acquisition process, PointsBet has affirmed that it has received the final payment of the headline purchase price of $225 million—originally agreed upon last June. This transaction facilitates the transfer of the remaining entities constituting PointsBet’s US consumer-facing gambling operations, Banach Technology, a copy of the PointsBet platform, and a license to use that proprietary technology platform.
With this closure, Fanatics has stated that its sportsbook will now be accessible to a staggering 95% of the online sports betting market in the United States. The tasks ahead involve transitioning the New Jersey and Illinois operations from PointsBet to Fanatics within the forthcoming 30-day window.
Further underscoring the scale of this deal, PointsBet confirmed that it had completed the financial transaction with a final installment of $50 million. Commenting on the acquisition’s significance, Fanatics Betting and Gaming’s CEO Matt King expressed that it has “supercharged” their plans for expansion. He highlighted the integration of PointsBet’s customers and technology into the Sportsbook and Casino platform and praised the influx of a highly skilled team hailing from PointsBet USA, which has already started to leave a positive mark on the business.
By month’s end, Fanatics is poised to operate online betting services in 20 states, a list that includes Massachusetts, Michigan, New Jersey, New York, and Pennsylvania. This ambition is dependent on receiving the necessary regulatory approvals. Further, the online presence of Fanatics Casino extends across Illinois, Michigan, Pennsylvania, and West Virginia, with New Jersey soon to be added to the fold. Additionally, Fanatics is set to manage the betting operations of 19 different retail locations, including the sole retail sportsbook located inside an NFL stadium at Commanders Field in Maryland.
The integration of PointsBet’s talent pool into Fanatics is notable, with Mark Hughes and Aonghus Mulvihill from PointsBet USA becoming part of the executive leadership at Fanatics. Moreover, the transaction has seen more than 200 PointsBet employees join Fanatics in various roles, and the leases for the former PointsBet offices in Colorado and Ireland have been acquired by Fanatics.
Providing some context to the acquisition, Fanatics had initially offered $225 million to purchase PointsBet US back in June 2023 following a competitive bid with DraftKings. An agreement had been in place for the acquisition of the US business for $150 million, scheduled for a shareholder vote at the end of June 2023. However, when DraftKings entered the fray with a higher bid of $195 million, PointsBet acknowledged the possibility that this could be a superior proposal. When Fanatics revised their offer, DraftKings stepped back, announcing it would no longer pursue PointsBet US.
The transition to Fanatics from PointsBet operations has been a year-long process. In the previous month, Fanatics took over operations in Kansas and launched in North Carolina upon the state’s legalization of sports betting. As such, the completed acquisition by Fanatics represents not just a business transaction, but a significant reshuffling of the U.S. online sports betting landscape, with Fanatics now strongly positioned to capitalize on an ever-growing market.
