Fanatics to Acquire PointsBet

The world’s biggest sports apparel and collectibles firm, Fanatics, has agreed to pay $150 million for the U.S. operations of PointsBet. Both parties expressed their confidence in the decision in a joint statement, noting that there are still additional stages to complete the transaction. The action was taken as Fanatics, backed by former minority Sixers owner Michael Rubin, just began to seriously enter the sports betting sector. The business, which has Conshohocken offices, opened a sportsbook near FedEx Field, where the Washington Commanders play. Additionally, it only recently introduced its mobile sportsbook’s test version in Tennessee and Ohio.

By purchasing PointsBet, Fanatics will have access to many significant markets, including Pennsylvania and New Jersey. Recently, they requested a sports betting license in New York, but they were denied. The fact that PointsBet is located in New York, though, gives Fanatics access to one of the biggest marketplaces. PointsBet currently operates in Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, West Virginia, and Virginia.

When the Fanatics product will be accessible in these new markets is unknown. The corporations stated that the agreement has not yet been formalized. In a statement, PointsBet stated that its shareholders would vote on the deal in late June.

At the SBC Summit North America conference last week in Secaucus, New Jersey, Fanatics Sports Betting Lead Matt King, a former FanDuel CEO, stated that the company is focusing on “sustainable scalability.” King claimed that Fanatics aims to provide customers with a user experience and rewards program that is unmatched by competing operators.

Fanatics has a mailing list of around 95 million sports fans that can be accessed for essentially no cost, and the company is estimated to be worth around $31 billion. King discussed connecting the company’s sportsbook with its apparel and collectible rewards programs throughout the conference.

Rubin, a Lafayette Hill native, relinquished his ownership interest in Harris Blitzer Sports & Entertainment last year due to what he believed to be possible conflicts of interest, among them Fanatics’ sports betting operation. The key question for Fanatics’ sportsbook and online gaming division going ahead is how much market share FanDuel and DraftKings already hold.

In terms of total sportsbook handle (the amount bet), PointsBet finished eighth in Pennsylvania for the month of March. Only 1.7 percent of the market in Pennsylvania, where FanDuel (39 percent) and DraftKings (26 percent) account for the majority of the state’s monthly handle, was represented by the $11,998,397 wager made through PointsBet in March.

If you have been watching NBA and NHL Playoff action recently you are well aware of just how much Fanatics is spending promoting their brand. You see Fanatics adds in almost every broadcast and with the addition of PointsBet, you can expect a lot more in the future.

When you are looking to make your own sports betting wagers, including same game parlays, make your wagers at PointsBet.