Fanatics Sportsbook, the sports betting division of renowned sports merchandise brand Fanatics, is currently engaged in advanced negotiations to acquire the United States operations of Australian sportsbook operator PointsBet.
The potential deal, including PointsBet’s innovative “PointsBetting” technology, is expected to be announced early next week, according to sources.
The acquisition of PointsBet USA would mark a significant milestone for Fanatics as it seeks to establish a strong presence in 12 U.S. jurisdictions with legalized sports betting by the 2023 NFL season.
Fanatics has a long-term vision of being present in every major state with legal sports wagering.
With market access already secured in 14 states, including New York and New Jersey, PointsBet is considered an attractive acquisition target due to its established presence and in-house technology platform.
PointsBet USA has faced challenges in the competitive U.S. online sports wagering space dominated by industry leaders DraftKings, FanDuel, and BetMGM.
In February, the sportsbook operator withdrew its app launch in Massachusetts, citing intense competition. This move raised speculation about PointsBet’s future plans in the U.S. market.
Subsequently, the company engaged a financial advisory services firm in April to seek a buyer for its U.S. business. It formally announced its intention to divest its U.S. and North American operations.
PointsBet has encountered setbacks such as terminating betting partnerships with the University of Maryland and the University of Colorado due to the updated Responsible Marketing Gaming Code for Sports Wagering.
The company had to face a temporary halt in its email communications system after a breach by a third-party provider involved in a crypto phishing scam.
On the other hand, Fanatics Sportsbook has been expanding its reach as well. It recently launched its mobile app in Tennessee and Ohio, complementing its retail location at FedExField in Maryland, which debuted in January.
The sports betting service also plans a June launch for its app in Massachusetts, after acquiring its online sports betting license via Plainridge Park Casino.
The potential acquisition of PointsBet USA by Fanatics Sportsbook highlights the ongoing consolidation within the sports betting industry and Fanatics’ determination to establish itself as a major player.
With the 2023 NFL season approaching, Fanatics is actively pursuing strategic opportunities to expand its market presence and capitalize on the growing demand for online sports wagering in the United States.
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