Fanatics completes initial phase of PointsBet USA acquisition in eight states

Fanatics Betting and Gaming, the gaming subsidiary of sports apparel giant Fanatics, has closed on the first eight states in its previously announced acquisition of the U.S. operations of PointsBet, which cover 14 states. As per the company, the acquisition is set to transform newcomer Fanatics into "a premier online gaming operator with proven products in sports betting and iCasino."

Following regulatory approvals, the company closed on the operating businesses of PointsBet USA in the following states: Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia.

As each state closes and officially becomes part of Fanatics, customers in such states will see PointsBet rebranded to “PointsBet, a Fanatics Experience,” with additional state closings to continue throughout the year.

Customers in Indiana and Illinois will see the rebranding in the coming months. However, the operating businesses of PointsBet USA in Indiana and Illinois will continue to be operated by PointsBet USA without interruption until Fanatics closes those states later this year, the company said.

On June 30, 2023, PointsBet Shareholders in Australia approved a Stock and Equity Sale Agreement with Fanatics for US$225 million on a debt-free basis for the sale of PointsBet’s United States sports wagering, advance deposit wagering (ADW), iCasino, Banach technology, and a license to use the company’s proprietary technology platform.

“We are excited about what we are building at Fanatics Betting and Gaming and this acquisition accelerates our plans,” said Matt King, CEO of Fanatics Betting and Gaming. "We have a ten-year plan that focuses on the customer and not market share. We are going to acquire customers efficiently, allowing us to return savings to customers by investing in the customer experience at Fanatics Sportsbook and PointsBet.”

Fanatics will add PointsBet’s online casino platform, which is available in four states, to continue the development of Fanatics’ online casino offerings that are scheduled to launch later this year in the United States.

In addition, Fanatics will begin integrating Banach Technology’s risk management platform and quantitative-driven trading models into the Fanatics Sportsbook app, which is now available for download on iOS and Android in Maryland, Massachusetts, Ohio, and Tennessee.

PointsBet USA will continue to operate in Illinois, Indiana, Louisiana, Michigan, New York, and Ohio until Fanatics is able to close on select states individually. PointsBet USA will continue to employ engineers, customer service teams, traders, marketing and compliance teams with a new influx of operating capital from Fanatics, the company said. Johnny Aitken will continue as the CEO of PointsBet USA.

At the start of football season, Fanatics will have a portfolio of brands live in 11 legal sports betting states and PointsBet Casino will be live in four states.