PointsBet US Sold to Fanatics Betting and Gaming for $150M

• Fanatics Betting and Gaming has acquired PointsBet US for $150 million.
• The Australian-based sportsbook will retain their Australian and Canadian businesses.
• Fanatics Sportsbook will gain access to PointsBet US’s sports betting licenses across 14 states.

NEW YORK – PointsBet US announced a $150M sale agreement with Fanatics Betting and Gaming for their United States sports betting and iGaming operations.

PointsBet will retain their trading businesses in Canada and Australia and proprietary sports wagering, racing, and iGaming platform. Fanatics will gain access to a copy of the software and a license to use their proprietary technology in the US.

A joint statement from Fanatics Betting & Gaming and PointsBet: pic.twitter.com/4sNAWzUmp5

— PointsBet Communications (@PB_Comms) May 15, 2023

With Fanatics Sportsbook in Ohio and Tennessee, the expansion of Fanatics in legal sports betting states continues to grow. Acquiring PointsBet US gives Fanatics access to 13 more states.

PointsBet Sportsbook Locations By State

• Colorado
• Illinois
• Indiana
• Iowa
• Kansas
• Louisiana
• Maryland
• Michigan
• New Jersey
• New York
• Ohio
• Pennsylvania
• West Virginia
• Virginia

Entrance into major markets, such as New York, were likely the driving force of the deal, as the NYS Gaming Commission denied Fanatics New York sports betting license application.

Although Fanatics founder Michael Rubin said that New York is where you can’t make money, the market is desirable enough to ignore the 51% tax rate. New Yorkers bet $1.79 billion in March alone, but PointsBet struggled to earn a large share. In March, FanDuel reeled in 40% of all sports betting wagers while PointsBet US made up less than two percent.

Fanatics has the funding that PointsBet US didn’t to advertise their sportsbook and keep up with the giants in major markets. Fanatics will officially acquire PointsBet’s state-wide operations at the end of August, as indicated by PointsBet’s published documents, with hopes to gain market access before the 2023-2024 NFL season.

News tags: Fanatics | Fanatics Sportsbook | FanDuel | Michael Rubin | New York | Ohio | PointsBet | PointsBet US | Tennessee