With 98.4% of the vote, PointsBet shareholders overwhelmingly approved the sale of the company’s U.S. assets to Fanatics on Thursday evening.
The acquisition will cost Fanatics $225 million, but gives the company a foothold in the U.S. sports betting market. Fanatics is expanding its own branded sports betting app in several states.
In many states where PointsBet is licensed, such as New York, Fanatics may acquire those market rights. In others, it may be required to apply on its own.
What’s next for PointsBet?
There has been no timeline set for PointsBet NY being shut down. It’s anticipated that Fanatics will rebrand the product under its own name in the United States.
For now, the app and sports betting site is available in New York and other states, uninterrupted. PointsBet NY customers do not need to take any action at this time.
The future of PointsBet and its unique “points betting” system is unclear. Fanatics CEO Matt King has hinted that Fanatics wishes to shake up a stale industry by bringing cutting-edge products and features to its new sportsbook. Whether that means points betting will be an option remains to be seen.
PointsBet, an Australian company, will continue to operate its branded sportsbook under that name in other parts of the world.
Fanatics makes a NY sports betting splash
Fanatics is a leading sports and collectibles retailer. Since it hired King as Chief Executive Officer of Fanatics Betting and Gaming in 2021, the company has been eyeing an entrance into the sports betting market in North America. So far, Fanatics has been licensed in Maryland, Massachusetts, Ohio and Tennessee.
In a statement, Fanatics expressed its delight in the outcome of the shareholder meeting.
“We are thrilled that the shareholders of PointsBet Holdings Inc. voted to approve our acquisition of the U.S. businesses of PointsBet. We moved decisively to close the deal and we look forward to working with our friends at PointsBet Holdings. Inc. to finalize the remaining acquisition details.”
Fanatics fended off a last-minute gambit by rival DraftKings, which made a $195 million bid to buy PointsBet. That offer was an attempt to block Fanatics from grabbing PointsBet, which is among the ten top sports betting apps in the U.S.
PointsBet has a lucrative New York sports betting operator’s license. The company also operates in Michigan, and Pennsylvania, which also rank among the most profitable markets in the country. Fanatics should have little problem being approved for licensure on its own in states where PointsBet was operating, or gaining use of the licenses from that company.
With a massive customer list from its retail apparel and other businesses, Fanatics and its extensive cash reserves could pose a challenge to DraftKings and FanDuel.