PointsBet has confirmed receipt of the final instalment of the headline purchase price of $225m — agreed last June — and has transferred the remaining entities to Fanatics.
This includes all of the remaining entities that make up PointsBet’s US B2C gambling operations, Banach Technology, a copy of the PointsBet platform and a licence to use that proprietary technology platform.
Fanatics said its sportsbook will be available to 95% of the addressable online sports bettor market in the US following this closure. Remaining tasks include migrating New Jersey and Illinois from PointsBet to Fanatics, which will happen in the next 30 days.
PointsBet confirmed a final payment of $50m had been made to complete the transaction.
“The acquisition of the US businesses of PointsBet has super charged our expansion plans,” said Matt King, chief executive of Fanatics Betting and Gaming (FBG).
“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.”
With Illinois – Fanatics will soon be live in 20 states
By the end of the month, Fanatics will be operating online in 20 states, including Massachusetts, Michigan, New Jersey, New York and Pennsylvania, pending regulatory approvals. Fanatics Casino is available online in Illinois, Michigan, Pennsylvania and West Virginia with New Jersey to follow. Fanatics will also provide the betting operations to 19 retail locations, including the only retail sportsbook inside an NFL stadium at Commanders Field in Maryland.
Mark Hughes and Aonghus Mulvihill will join the executive leadership team at Fanatics from PointsBet USA. In addition, more than 200 PointsBet employees are joining the company in a variety of roles and the company has taken over the leases of the former PointsBet offices in Colorado and Ireland.
Fanatics made its $225m offer to acquire PointsBet US in June 2023 following a bidding war with DraftKings. Fanatics had struck an agreement with PointsBet to acquire its US business in May for $150.0m and shareholders were due to vote on this at a meeting on 30 June.
However, in June, news broke that DraftKings had submitted a higher proposal worth $195.0m. PointsBet said it would engage with DraftKings over what it said could be a “superior” proposal. Upon confirmation of the improved Fanatics offer, DraftKings announced that it would no longer pursue a deal to acquire PointsBet US.
Over the last year, Fanatics has taken over from PointsBet in each of the states it was operational. Last month it took over PointsBet’s operations in Kansas, while also rolling out in North Carolina when the state officially launched its legal sports betting market.
Original article: https://igamingbusiness.com/strategy/ma/fanatics-set-for-illinois-launch-after-completing-225m-pointsbet-us-acquisition/
