Fanatics completes $225m acquisition of PointsBet’s US arm
Challenger operator Fanatics Sportsbook now available to 95% of the addressable online sports betting market in America
Fanatics Betting and Gaming (FBG) has completed its acquisition of PointsBet’s US business around nine months after the deal was first agreed in June 2023.
PointsBet has confirmed it received the final instalment of the headline purchase price of $225m and has transferred the remaining entities to FBG.
These include PointsBet’s US B2C gambling operations, Banach Technology, a copy of the PointsBet platform, and a license to use the platform.
FBG also announced that by the end of April, once it launches in its 20th and final state, Illinois, its sportsbook will be available to 95% of the US addressable online sports betting market.
Since September last year, the operator has been migrating PointsBet’s customers to the Fanatics Sportsbook and Casino platform.
Fanatics Sportsbook is already live in the likes of Massachusetts, Michigan, New York, and North Carolina. Fanatics Casino, which is embedded in Fanatics Sportsbook, is available in Michigan, Pennsylvania, and West Virginia, with a launch in New Jersey set to follow.
PointsBet COO Mark Hughes and PointsBet US chief revenue officer Aonghus Mulvihill will join the executive leadership team at FBG.
In addition, more than 200 PointsBet employees will move to Fanatics in a variety of roles, while FBG has taken on the leases of former PointsBet offices in Denver, Colorado, and Dublin, Ireland.
On the deal’s closure, FBG CEO Matt King said: “The acquisition of the US businesses of PointsBet has supercharged our expansion plans.
“In addition to our migration of PointsBet customers and technology to the sportsbook and casino platform, we have also added an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business.”
Fanatics originally tabled a $150m bid for PointsBet’s US division in May 2023 but increased its offer to $225m when it was gazumped by DraftKings’ non-binding $195m bid in June.
Following the improved offer, DraftKings failed to meet PointsBet’s terms to firm up its proposal by the deadline of June 27, 2023.
Once that deadline passed, PointsBet shareholders voted overwhelmingly to approve the deal on June 30, with FBG paying an initial $175m.