In a significant move for the sports betting industry, Fanatics has solidified its position as a dominant player in the US market with its latest expansion into New Jersey. Following the finalization of its acquisition of PointsBet’s US operations, the group has announced that its sportsbook offering now reaches approximately 95% of the American online betting landscape. This expansion was made possible through a $225 million acquisition of PointsBet’s US business, which was completed in April 2024 after a deal was struck last year.
The integration into New Jersey is notable as Fanatics’ sportsbook seamlessly transitions PointsBet customers to the Fanatics platform, ensuring that usernames, passwords, account balances, rewards points, and even responsible gaming settings are maintained without disruption. Further bolstering its offerings, New Jersey becomes the fourth state where Fanatics has introduced its online casino, joining the likes of Michigan, Pennsylvania, and West Virginia, to feature a variety of traditional and popular casino games such as roulette and slots.
Fanatics’ scope of operation is not limited to the online realm. The company boasts 19 retail locations that include sportsbooks situated near iconic venues like Progressive Field, Nationwide Arena, and the unique inclusion of a sportsbook inside an NFL stadium at Commanders Field. It’s clear that Fanatics’ strategic placements for its retail sportsbooks are designed to tap into diverse markets and cater to various preferences from sports bettors.
The journey to this expansive coverage wasn’t a smooth sail for Fanatics. The acquisition saga began in June 2023, when Fanatics entered into a bidding war with DraftKings. Initially, an agreement to purchase the US business of PointsBet for $150 million was on the table. However, this deal was turned on its head when DraftKings entered the fray with a higher bid of $195 million. PointsBet, enticed by the increased offer, initially considered engaging with DraftKings, which could have potentially led to a better deal for its shareholders. In a turn of events, DraftKings eventually withdrew its bid, paving the way for Fanatics to close the acquisition.
The strategic takeovers by Fanatics have been systematic and thorough. Over the past year, Fanatics replaced PointsBet within each state where it was previously operational. Prior to the New Jersey update, the company had undertaken PointsBet’s operations in Kansas and also expanded into North Carolina as the state opened its doors to legal sports betting.
Fanatics’ comprehensive approach in this transformation has been both aggressive and tactful. While the takeover may have been costly, the calculated expansion into these markets shows a clear directive to not only inherit an existing customer base but also to forge ahead with its own identity and service quality.
As online betting and gaming continue to grow at a rapid pace across the United States, companies like Fanatics are in a fierce competition to capture this burgeoning market. With the integration of PointsBet’s operations and the entry into New Jersey, Fanatics has shown that strategic acquisitions can lead to swift and sizable market penetration. The sportsbook and casino platforms currently offered by the group are testament to its commitment to establishing a national, and potentially international, footprint in the sports betting industry.
For fans and bettors alike, the consolidation of two significant players in the sports betting space means greater accessibility and potentially more enhanced services. As Fanatics continues to expand and refine its offerings, the sports betting landscape in the United States will likely see considerable shifts, both in terms of market share and the user experiences on offer. The key takeaway from Fanatics’ latest maneuver is that the group is not just playing to participate in the sports betting market; it’s playing to lead it.
