Fanatics Agrees to $150 Million Purchase of PointsBet’s Assets

Fanatics and PointsBet released a joint statement on Sunday announcing that the sports merchandising business agreeing to pay $150 million for the gaming company’s U.S. sports betting assets. 

After spending several years attempting to enter the sports wagering business, Fanatics looks to make a splash in the 15 states, including the PA sports betting market, that PointsBet currently operates within. According to reports, Fanatics hopes to take over PointsBet’s assets by the beginning of the lucrative NFL season.

“Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s U.S. business. While there are still several steps in the process to complete the acquisition, both parties are confident in the outcome,” the companies said in their joint statement. “Fanatics Betting and Gaming and PointsBet will provide further details of the proposed deal and timely updates in the coming weeks.”

A joint statement from Fanatics Betting & Gaming and PointsBet: pic.twitter.com/4sNAWzUmp5

— PointsBet Communications (@PB_Comms) May 15, 2023

PointsBet, falling victim to heavy marketing and startup costs in a saturated U.S. market due to the deep pockets of DraftKings and FanDuel, had put their assets up for sale to cut their losses. According to forecasts, PointsBet planned to lose roughly $80 million in the second half of 2023 due to their exorbitant production costs.

With news of the sale, PointsBet, located and publicly traded in Australia, hopes to hold a vote of shareholders sometime in late-June.

In early February, Fanatics came close to purchasing ParxBet’s sports betting division, with rumors suggesting the sports merchandising powerhouse could takeover in the company’s 20 states.

But the purchase fell through and Fanatics began shopping for a better fit. The company’s Betting and Gaming CEO, Matt King, told an audience at this year’s SBC Conference that Fanatics has been looking to enter the sports betting market for “10 years.”

The company has already created an betting app ready for launch with beta testing occurring in Ohio and Tennessee. The app will work in concert with the company’s sports merchandise website, offering FanCash, a bonus currency, to frequent bettors to spend on memorabilia and branded products. 

After they establish their footprint within current PointsBet markets, including the PA online sports betting market, Fantatics could expand and enter the PA online casinos industry.