Fanatics Betting and Gaming Closes First Wave of States in its Acquisition of the US Businesses of PointsBet
Today, Fanatics Betting and Gaming, a subsidiary of Fanatics Holdings Inc., closed on the first eight states in its previously announced acquisition of the U.S. businesses of PointsBet USA. The acquisition transforms Fanatics Betting and Gaming into a premier online gaming operator with proven products in sports betting and iCasino.
On June 30, 2023, PointsBet Shareholders in Australia approved a Stock and Equity Sale Agreement with Fanatics Betting and Gaming for US$225 million on a debt free basis for the sale of PointsBet’s United States sports wagering, advance deposit wagering (ADW), iCasino, Banach technology, and a license to use the company’s proprietary technology platform.
Today, following regulatory approvals, Fanatics Betting and Gaming closed on the operating businesses of PointsBet USA in the following states: Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia. As each state closes and officially becomes part of Fanatics Betting and Gaming, customers in such state will see PointsBet rebranded to “PointsBet, a Fanatics Experience,” with additional state closings to continue throughout the year. Customers in Indiana and Illinois will see PointsBet rebranded to “PointsBet, a Fanatics Experience” in the coming months, but the operating businesses of PointsBet USA in Indiana and Illinois will continue to be operated by PointsBet USA without interruption until Fanatics Betting and Games closes those states later this year.
“We are excited about what we are building at Fanatics Betting and Gaming and this acquisition
accelerates our plans,” said Matt King, CEO of Fanatics Betting and Gaming. "We have a ten-year plan that focuses on the customer and not market share. We are going to acquire customers efficiently, allowing us to return savings to customers by investing in the customer experience at Fanatics Sportsbook and PointsBet, a Fanatics Experience.”
This strategic acquisition complements the growth and diversification that Fanatics Betting and
Gaming has accomplished over the past two years. Fanatics Betting and Gaming will add PointsBet’s online casino platform, which is available in four states, to continue the development
of Fanatics’ online casino offerings that is scheduled to launch later this year in the United States. In addition, Fanatics Betting and Gaming will begin integrating Banach Technology’s risk management platform and quantitative driven trading models into the Fanatics Sportsbook app that is now available for download on iOS and Android for sports fans in Maryland, Massachusetts, Ohio and Tennessee.
As part of the Fanatics experience, new and current PointsBet customers will have the opportunity to become part of the Fanatics family and the global digital sports platform of legal sports betting and iGaming, team merchandise and collectibles (trading cards). In addition, PointsBet customers will experience new and engaging promotions that Fanatics is planning this football season.
PointsBet USA will continue to operate in states like Illinois, Indiana, Louisiana, Michigan, New York and Ohio until Fanatics Betting and Gaming is able to close on select states individually. PointsBet USA will continue to employ engineers, customer service teams, traders, marketing and compliance teams with a new influx of operating capital from Fanatics Betting and Gaming. Johnny Aitken will continue as the CEO of PointsBet USA and customers will continue to enjoy the most markets on all four major U.S. sports including up to 1,000 markets per NBA game and the quickest, most user-friendly app on the market today.
At the start of football season, Fanatics Betting and Gaming will have a portfolio of brands live in
11 legal sports betting states and PointsBet Casino will be live in four states.