Fanatics Outbids DraftKings to Aquire PointsBet’s US Business

Fanatics finalized their acquisition of PoinstBet Sportsbook’s US business this week. This deal comes soon after they launched their beta sportsbook, and the acquisition is expected to help them quickly become a significant player in the industry. That is due to the licenses PointsBet holds with US states, which will immediately give them access to several key US markets.

Fanatics and PointsBet had initially agreed to a deal of around $150 million in May, but DraftKings entered a last-minute bid of $195 million. Fanatics accused the industry giant of attempting to block the deal instead of actually wanting to acquire Pointsbet. However, Fanatics still upped their bid to $225 million to secure the deal. That number does not include the $250 million advertising deal with NBC, which brings the total cost to $475 million.

Why PointsBet Was so Important

The deal with PointsBet was crucial to the future plans for the Fanatics Sportsbook. The agreement gives them a significant advertising deal and allows them to launch their mobile app in 11 new states. Those states are New York, New Jersey, Pennsylvania, Colorado, Illinois, Indiana, Kansas, Louisiana, Michigan, Virginia, and West Virginia. 

Had DraftKings outbid them, Fanatics would have needed to apply for new licenses in each state, leading to a much longer and likely smaller rollout. That would have put them at a significant disadvantage given the already crowded industry, but this deal now makes them one of the largest sportsbooks in the country.

What the Deal Means for the Sports Betting Industry

Once completed, Fanatics will immediately become a major player within the sports betting landscape. Their access to 11 states where PointsBet already has already established a strong userbase will allow them to roll out their new sportsbook quickly. Fanatic’s well-known brand will also help them gain new users, which is a big reason why DraftKings attempted to stop the deal. With this deal, you can expect Fanatics to become a major name in the sports betting industry within a year.