Fanatics Buys PointsBet’s US Division for $150 Million

Earlier this year, there was talk about PointsBet searching for a sale for the United States portion of their business. It appears that a deal has been found with sports merchandising giant Fanatics, which has also made its way into the sports betting industry, agreeing to buy all PointsBet American assets for about $150 million.

Deal Details

This is Fanatics' first major move in the sports betting marketplace, as this deal positions them to break into the market quickly. A joint statement released from both companies said, “Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s U.S. business.”

The statement continued, saying, “While there are still several steps in the process to complete the acquisition, both parties are confident in the outcome. Fanatics Betting and Gaming and PointsBet will provide further details of the proposed deal and timely updates in the coming weeks.”

This deal gives Fanatics access to 15 American markets, including several with major sports franchises. It would seem likely, with a good initial foothold, that Fanatics will increase their market availability by applying for licenses in other legal betting states throughout the country as well as getting into markets as they are legalized, as is expected with Kentucky and North Carolina later this year.

Why PointsBet is Selling

PointsBet financial forecasts point to potentially more than $75 million in losses for the second half of 2023. The hyper-competitive American market has created tough challenges for the Australian sports betting brand. The continued losses would have required additional capital from to-be-determined investors. The sale gives PointsBet life and hopes for the other sports betting platforms they operate globally.

Will Fanatics Be Successful and Challenge the US Sports Betting Giants

Unlike PointsBet, Fanatics will not have capital issues, with a company valuation of over $31 billion and reported revenue forecasts for 2023 looking to be about $8 billion. The brand is well known for its apparel, and it also recently acquired the Topps trading card company last year for a reported $500 million deal. Fanatics' ability to inject cash flow into their new sportsbook allows them to challenge any sports betting provider in the industry.

An excellent company to compare to would be Sports Illustrated, which, in the last few years, got into the sports betting game. SISportsbook offers some really cool betting promos that partner with their media side for betting bonus credits coupled with magazine covers. 

It will be interesting to watch Fanatics develop promos that are similar but with their apparel brand. It would be a good draw to earn a betting bonus to go with a t-shirt of your favorite team. Fanatics will be a brand to watch for sure in the coming months and years to follow.