Fanatics Secures Regulatory Approval to Acquire PointsBet in Seven States, Expands Sports Betting Footprint
- Fanatics has received regulatory approval to acquire PointsBet’s operations in seven U.S. states
- Fanatics and PointsBet agreed on the acquisition deal in July 2023
- Fanatics plans to receive regulatory approval in more state
In a significant move, Fanatics gains regulatory approval to acquire PointsBet operations in seven states, inching closer to its ambitious expansion goals ahead of the 2023 NFL season.
Fanatics Is Approved To Acquire PointsBet in Seven States
Fanatics, a major player in the sports merchandise industry, has secured regulatory approval to acquire PointsBet operations in seven U.S. states. The approval comes as part of the company’s previously announced $225 million acquisition deal with PointsBet US and expands its sports betting operations just in time for the 2023 NFL season.
The states where Fanatics has received the green light to operate are Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia. Earlier this month, the company also debuted its mobile sports betting app in Maryland, Massachusetts, Ohio, and Tennessee. With these recent approvals, Fanatics will be operational in 11 states, slightly short of its initial goal to be live in 12 to 15 states before the NFL season kicks off.
“While we’re a bit shy of our initial target, receiving approval in 11 states in just two months since our acquisition agreement with PointsBet is a monumental achievement,” said a company spokesperson.
As part of the acquisition, PointsBet will undergo rebranding in the acquired states and will be known as ‘PointsBet, a Fanatics Experience.’ The rebranding will continue as Fanatics gains regulatory approval in more states throughout the year.
Shareholders of Australia-based PointsBet recently approved the cash distribution tied to the sale of its U.S. operations to Fanatics. “We’re excited to bring in more operational capital and expertise through Fanatics Betting and Gaming,” said Johnny Aitken, CEO of PointsBet USA.
Customers in states like Illinois and Indiana will continue to see the PointsBet USA branding until Fanatics receives regulatory approval in those jurisdictions. PointsBet also plans to continue operations in Louisiana, Michigan, New York, and Ohio pending further approvals. Notably, New York remains a critical market for sportsbook operators, and Fanatics has previously criticized its high tax rates on sports betting.
The acquisition also includes a commitment to retain PointsBet’s current teams, including engineering, customer service, trading, marketing, and compliance departments. “We’re not just expanding our geographical footprint, but also investing in a skilled workforce,” added Fanatics in a statement.
Looking ahead, Fanatics Betting and Gaming has its sights set on acquiring licenses in several more states, including North Carolina, Tennessee, and Arizona. The company is also expected to launch operations in Kentucky next month as regulated sports wagering takes off in the state.
With its aggressive expansion and ongoing collaborations, Fanatics is rapidly solidifying its position in the U.S. sports betting market, a crucial arena ahead of the 2023 NFL season.
Betting Implications
Fanatics acquisition of PointsBets was a large deal, especially when the sports betting titan DraftKings had also bid on to acquire the Australian-based sportsbook. As the sports merchandise company gets into the sports betting game, they are rapidly expanding and they could begin to compete with DraftKings and FanDuel as one of the more popular platforms.