Last Sunday, a deal was made between Fanatics a sports merchandise company and PointsBet, an Australian sportsbook. According to the deal, Fanatics Agrees to Buy PointsBet US for $150 million. The deal will give Fanatics all of PointsBet’s assets in the US market.
Fanatics is mostly known for providing sports apparel and its partnerships with major sports leagues like the NFL and MLB. However, they have been part of the U.S. sport betting market for the past 4 years. According to online bookie software news, this deal will be fanatic’s first major leap into the U.S. Sports Betting market.
While the agreement between both companies has been made, several more steps need to be made before the actual acquisition. However, both parties are confident of the outcome.
For its part, PointsBet will retain all of their business assets and ventures in Australia and Canada. In addition, before they can finalize the deal, PointsBet shareholder will have to agree on the sale. Therefore, they are expecting to hold a vote for the proposition in June of this year.
According to the press release, more details of the deals will be given in the coming weeks.
Fanatics Agrees to Buy PointsBet US Reflects on the Industry’s Growth
For Fanatics, the acquisition of PointsBet’s U.S. assets is the ideal solution to expand for their existing sportsbooks. This is because it will allow their sportsbooks to operate in 15 more states ahead of the 2023 football season.
On the other hand, this acquisition would be the end of PointsBet’s attempt in the U.S. sports gambling market. This is despite the sports betting industry potentially worth $167 billion by the end of the decade. Thus, it is showing that the U.S. sports betting market is tough for smaller companies.
However, for bookies, it is not unreachable as long as they use a bookie pay per head service. This is because they do not need to worry about infrastructure or employees. Instead, they only have to pay $5 or less per player to get everything they need to open a sportsbook.
Fanatics acquisition of PointsBet’s US business will also see the brand conclude its partnership deal with NBCUniversal. The final payment in the media agreement is included as part of PointsBet’s capped funding requirement in the deal. NBCUniversal has opted to release PointsBet Holdings Limited from its obligations under its media services agreement.
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