PointsBet Sportsbook To Be Sold To Fanatics For $150 MillionCompany To Retain Australian Gambling Business |
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PointsBet Holdings Limited announced that it has entered into an agreement for the sale of its United States online gambling business.
PointsBets’ sports wagering, advanced-deposit wagering (ADW) and online casino gambling operations, Banach technology, and a copy of the software for, and a license to use, the company’s proprietary technology platform will go to Fanatics Betting and Gaming for cash consideration of $150 million. PointsBet stock was down more than 20 percent on the news.
Fanatics is looking to be a major player in the U.S. online sports betting market, leveraging its large database of customers from its sports clothing business.
The deal is subject to shareholder approval and certain regulatory and other conditions.
PointsBet will retain its Australian and Canadian businesses and operations. The company will also retain its proprietary sports wagering, racing and iGaming platform and be granted a perpetual, royalty-free license to exploit the Banach technology assets.
PointsBet’s commercial commitments to NBCUniversal will be transferred in full to Fanatics as part of the transaction, the sportsbook said.
“In view of the U.S. market in which the company has significant operations, the Board has explored and considered a wide range of strategic alternatives over an extended period of time,” PointsBet Chairman Brett Paton said in a statement. “Having considered all of the options potentially available to the company, the Board believes the Fanatics Betting and Gaming proposal optimizes value for shareholders.”
He added that the “acquisition by Fanatics Betting and Gaming of our U.S. Business will enable PointsBet to return significant capital to shareholders while retaining strong Australian and Canadian businesses supported by our leading proprietary technology in a capital light setting.”
“Despite the strategic success building a valuable asset in the U.S., the costs of operating in a state-by-state environment, together with the requirement to build significant scale to compete against well-capitalized operators, led us to explore several options,” PointsBet Managing Director and Group CEO Sam Swanell said. “Fanatics has recognized our strategy, technology and team, as a platform for their own expansion in the online sports betting and iGaming market.”
The sale of PointsBet to Fanantics had been rumored as early as 2021. The online sports betting industry giants include the likes of FanDuel, DraftKings, and BetMGM, and Fanatics will look to leverage the PointsBet deal to immediately compete for market share.
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