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Fanatics Betting and Gaming (FBG) has completed its acquisition of PointsBet’s US business after closing on the brand’s final state, Illinois. 

PointsBet has confirmed the receipt of the final instalment of $50m of the headline purchase price of $225m and has transferred the remaining entities to FBG. 

This includes the remaining entities that make up PointsBet’s US sports wagering, advance-deposit wagering and iGaming operations, as well as its Banach Technology subsidiary, a copy of the PointsBet platform and a licence to use the proprietary platform.  

Accelerated growth plans

Fanatics’ said the acquisition accelerated the company’s growth plans, making the Fanatics Sportsbook available to 95% of the addressable online sports bettor market in the US.  

By the end of the month, FBG will be operating online in Arizona, Colorado, Connecticut, Indiana, Illinois, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Vermont, Virginia and West Virginia, pending regulatory approvals. 

Fanatics Casino is available online in Michigan, Pennsylvania and West Virginia, with New Jersey to follow. 

However, FBG will also provide betting operations to 19 retail locations, including the only retail sportsbook inside an NFL stadium at Commanders Field in Maryland. 

PointsBet US team joins FBG

“The acquisition of the US businesses of PointsBet has super charged our expansion plans,” said FBG CEO Matt King.

“In addition to our migration of PointsBet customers and technology to the Fanatics Sportsbook and Casino platform, we have also added an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business.” 

Chief operating officer Mark Hughes and chief revenue officer Aonghus Mulvihill will join the executive leadership team at FBG from PointsBet US.  

In addition, more than 200 PointsBet employees are joining FBG in a variety of roles, and the company has taken over the leases of the former PointsBet offices in Denver, Colorado, and Dublin, Ireland.  

A complex migration

PointsBet retains its Australian and Canadian business, together with ownership of its proprietary sports wagering, racing, and iGaming platform and a perpetual, royalty-free licence to exploit the Banach technology assets.

 “The fact that we have achieved completion of this transaction with no delays speaks to both PointsBet and FBG being reputable, high compliance businesses with constructive regulator relationships,” PointsBet managing director and group CEO Sam Swanell said.

“I would like to thank the entire PointsBet team on their significant efforts through what has been a complex technical and operational migration. 

“Completing this separation while at the same time delivering outstanding results for the ongoing business has been a fantastic achievement,” he added. 

Achievements and redundancies

Swanell also praised PointsBet group CTO Jerry Bowskill who will leave the business. 

In a LinkedIn post, Bowskill described the technical migration as one of his “career highlights.”

He added: “With this being the end of an era for so many, I would like to encourage everyone made redundant to stay positive (and to keep reaching out if I can help), congratulate those who are continuing to disrupt the US market within the FBG team, and to the remaining technology team members within PointsBet, I wish you only the best under new leadership. 

“Everyone who played a part in building PointsBet USA should be incredibly proud of all that was achieved.”

Group CEO Swanell also acknowledged PointsBet USA CEO Johnny Aitken for his “outstanding contribution to PointsBet over the last six years. 

“We entered the USA as a start-up in the second half of 2018 and established a presence that few would have thought possible.

“From New Jersey initially to ultimately 14 states of the US, it has been an action packed and demanding journey and Johnny’s strategic thinking, work ethic, and leadership has been greatly appreciated,” he added.

It was previously announced that Aitken will continue as the CEO of PointsBet USA.

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