Fanatics Set to Expand US Operations as PointsBet Shareholders Greenlight Acquisition

Jessica Aletor
By:
Jessica Aletor
07/07/2023/
News
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Highlights

  • In the final week of June, Fanatics upped its bid for the purchase of PointsBet to $225 million to give the deal a fighting chance.
  • On June 30, PointsBet shareholders finally voted on the proposed bid and an overwhelming majority approved the deal to proceed.
  • This means Fanatics will now expand its sports betting business to 12 more jurisdictions in addition to owning PointsBet casinos.

The PointsBet and Fanatics deal is finally drawing to a close after PointsBet’s voting shareholders threw their weight behind the sports merch’s bid. Despite the dramatic events that characterized the take-over, it now appears that Fanatics would take control of PointsBet’s US assets in the coming months. The deal is set to be completed for $225 million, after a $195 million intrusive bid by DraftKings forced Fanatics to improve its previous offer of $150 million by 50%. Here at GambleOnlineMichigan, we’ve followed up on every aspect of this acquisition and will subsequently highlight some of the talking points as the deal is close to completion.

99% of PointsBet Voting Shareholder Endorsed the Acquisition

About 99.16% of PointsBet shareholders expressed support for the proposed bid by Fanatics at the company’s special meeting held in Australia on June 30. This came in the aftermath of an increased bid from Fanatics worth $225 million. Over 195 million shareholders cast their votes in approval for the deal while another 1.6 million voted against the transaction. About 40,000 shareholders abstained from voting in a meeting that took several hours. 

In a statement released by the representatives of Fanatics Betting and Gaming, the company expressed its desire to work on finishing the remaining parts of the deal. The release reads thus:

“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.”

“This is a pivotal moment for Fanatics Betting and Gaming that will accelerate our growth in the legal online sports betting, advance deposit wagering and iGaming markets in the United States. Pending regulatory approvals in the various states in which PointsBet operates, we will have more details to share in the coming weeks on how the acquisition of PointsBet US businesses will bring to life our unique vision for Fanatics Betting and Gaming.”

The deal, however, would not include the other gaming operations of PointsBet in Ontario and Australia. Nevertheless, it would set the stage for a massive expansion of Fanatics in states like Illinois, where it is set to be the fourth-largest sports betting operator.

Fanatics Now Set to Expand Sports Betting Business to Over 14 US Jurisdictions

According to PointsBet Australia CEO, the goal behind selling its shares in US operations was to “stabilize the company from a capital perspective” after the losses incurred in the American market. For Fanatics, on the other hand, this sale will open them to 12 additional jurisdictions.

At the moment, the company is present in four states of the US and is seeking to shake off the massive duopoly that has been created in the sports betting market by FanDuel and DraftKings. Both companies hold 80% of the total market share in the country, with DraftKings making an offer of $195 million for PointsBet several weeks ago. Had this gone through, it would have further strengthened the duopoly by about over 2%.

Brett Paton, Chairman of PointsBet considered that his company was perhaps the most viable way for Fanatics to make an entry into the market. “Once we decided to sell the U.S. business, we turned our attention to finding the right business partner,” Paton said at a meeting with stakeholders in Sydney. “Fanatics identified in PointsBet many of the attributes needed to be successful in entering the online market. In turn, Fanatics has a strong brand and an extensive sports customer base with a fanatical interest in sports.”

This deal will officially bring Fanatics into Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, New Jersey, New York, Pennsylvania, West Virginia, and Virginia. Fanatics is currently licensed to operate only in Ohio, Maryland, Massachusetts and Tennessee.

Detroit Tigers Falling Behind in the Race to Win AL Central Division

In other Michigan sports betting news, sportsbooks have considered the Detroit Tigers one of the least favorites to win the AL Central Division. The division is arguably one of the least competitive in the World Series and the leaders, Minnesota Twins have odds of +3000 to win the Series. Across other divisions, sportsbooks consider those teams as having higher chances than those in the Central division. For example, almost all the teams in the East Division have odds of 500 or better to win the World Series.

While hopes for the Tigers to win the World Series are absolutely bleak, it stands a chance to pull a late surge and conquer its division. Unfortunately, not too many sportsbooks trust the Tigers’ potential comeback. FanDuel Sportsbook Michigan gives the Tigers a +3500 odds to win the Division and even longer odds (+50000) to win the World Series. Michiganders can wager on the Detroit Tigers on MLB betting sites available in the state.

Jessica is a news contributor to Gamble Online Michigan. She holds a Bachelor's degree in Economics but has over three years of experience working in the hospitality and gambling industry. Despite her core finance and investment banking background, she has been a casino feature writer for N1 Interactive Limited and multiple gambling affiliate sites. Her work has been featured on the bet365 blog, casino.zone and Max Force Racing. She spends her time between Michigan and California, staying up-to-date on the latest industry developments