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Now we know why Fanatics' CEO, Michael Rubin was so confident that his new online sportsbook would be in several states before the 2023 NFL season rolled around. Fanatics, an online conglomerate for sports apparel, has reached a deal with PointsBet Holdings Ltd. to buy the US operations side of its sportsbook business for $150 million in cash.
Sports betting industry experts have expected a large acquisition for Fanatics for quite some time. Those expectations were proven true after negotiations kept progressing between Fanatics and PointsBet during the SBC Summit North America. The biggest win for Fanatics in this deal is the sheer number of markets they'll gain access to.
According to PointsBet, Fanatics will gain access to a minimum of three states by February 2024. They will receive entry into the rest of the states that PointsBet does business in on a rolling basis. This is huge for Fanatics, which is currently only offering online sports betting in Ohio and Tennessee.
Another gigantic win for Fanatics is the fact that they will inherit a phenomenal sports betting app from PointsBet. Current PointsBet customers have given the sports betting app a 4.8 out of 5 rating (through over 38,000 reviews) on the App Store. Through over 100,000 reviews on the Google Play Store, PointsBet currently has a 4.5 out of 5 rating!
The CEO of Fanatics Betting and Gaming, Matt King, said last week that market access is 40-50% cheaper now— 15 states for $150M- (and regulators may see Fanatics as knight in shining armor given how financially-challenged PointsBet was). https://t.co/We8Qye3CDT
— Contessa Brewer (@contessabrewer) May 15, 2023
PointsBet has done well in both Australia and Canada, but they've struggled since entering the United States in 2019. Despite being licensed in 14 states, PointsBet's US operations have shown a loss.
This agreement with Fanatics will allow PointsBet to focus on its markets that are actually making them money. PointsBet was founded in Australia in February 2017 and is publicly traded on the Australian Stock Exchange.
The online sports betting app entered Ontario on April 4, 2022. Their most recent launches in the US occurred in Kansas, Maryland, and Louisiana in September 2022.
While working diligently to complete the aforementioned deal with PointsBet, Fanatics Sportsbook plans to launch in Maryland and Massachusetts by late June, according to their CEO of Betting and Gaming, Matt King. The long-time sports betting industry veteran held positions of Chief Financial Officer (CFO) and Chief Executive Officer (CEO) during two separate stints with FanDuel Sportsbook.
The Washington Commanders have opened a sportsbook at FedEx Field: pic.twitter.com/PjoyrhMIl6
— Sam Fortier (@Sam4TR) January 20, 2023
The move of Fanatics' online sports betting app into Maryland is no surprise. The company already operates a retail sportsbook in Maryland at FedEx Field, home of the Washington Commanders.
With the brand already established in the Old Line State, the launch of Fanatics' online sportsbook could be huge. Stay tuned to EWB for more details on Fanatics Sportsbook in the future!