In a significant move into the U.S. sports betting market, Fanatics has reached an agreement to purchase PointsBet’s U.S. operations. This marks a notable milestone for the sports giant, as it ventures into the realm of sports betting.
The cash deal is valued at approximately $150 million, with the announcement made by both companies on Sunday night.
Through this agreement, Fanatics will expand its presence in a minimum of 15 states. With the goal of gaining access to the majority of states where PointsBet currently operates, Fanatics aims to accomplish this before the NFL season commences.
The deal, which exclusively covers PointsBet’s U.S. assets, is anticipated to undergo a shareholder vote by PointsBet, listed on the Australian stock exchange, in late June.
To offset the ongoing cash flow burn, Fanatics plans to provide funding, as PointsBet has been allocating substantial resources to marketing efforts in order to compete with larger competitors like DraftKings and FanDuel.
Fanatics, a sports platform company, holds an impressive private valuation of $31 billion. The company has projected a revenue of $8 billion for the year 2023.
In addition to its core operations, Fanatics possesses commerce assets and has expanded into the sports trading card market. Notably, the company made headlines with its acquisition of the renowned trading card company Topps for $500 million in the previous year.
Furthermore, Fanatics is actively developing its sports betting division, showcasing its commitment to diversifying its offerings and capitalizing on emerging opportunities within the sports industry.
