Fanatics Betting and Gaming (FBG), the sports retail giant’s gambling division has completed the purchase of PointsBet’s US business in New York and Wyoming. This brings FBG closer to taking over the entire PointsBet US operation, which it agreed to buy for $225.0m in June 2023.
The deal required approval from each state where PointsBet US operates. FBG has now secured the consent of the New York State Gaming Commission and transferred ownership of PointsBet New York LLC to its division. FBG has also acquired PointsBet Wyoming LLC after meeting certain conditions in the state.
The acquisition of PointsBet US will give FBG access to one of the most advanced sports betting and igaming platforms in the market. PointsBet US has been active in 13 states, offering online and retail sports wagering, as well as online casino games in some jurisdictions.
FBG plans to transfer the remaining PointsBet US operations to its division as soon as it obtains approval from each state. So far, FBG has completed the purchase of PointsBet US in 10 states, including New Jersey, Pennsylvania, Colorado, Iowa, Kansas, Maryland, Virginia and West Virginia. PointsBet will continue to run the business in Illinois, Indiana, Louisiana, Michigan and Ohio until FBG closes on these states individually.
The deal faced some competition from DraftKings, which made a higher bid of $195.0m for PointsBet US in June. However, FBG countered with an improved offer of $225.0m, which was unanimously supported by PointsBet’s board and shareholders leading to DraftKings withdrawing from the process.
PointsBet decided to sell its US business due to the high costs and capital pressures of competing in the US market. The operator said it would focus on its opportunities in Australia and Canada, where it still owns its proprietary platform.
When asked about the sale of PointsBet’s US business, Chairman Brett Paton stated: “the board believes that the proposed sale of the US business delivers the most attractive risk-adjusted value outcome for shareholders, compared to the risks and benefits of PointsBet pursuing other potential options including the status quo,”
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