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Fanatics Betting and Gaming has closed on its acquisition of PointsBet’s US operating businesses across eight states.

The completed states – Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia – represent the first eight where Fanatics has received all the necessary regulatory approvals to complete the acquisitions.

Transactions are still to be completed in other states including Illinois, Indiana, Louisiana, Michigan, New York and Ohio.

PointsBet rebrand

In the states where the acquisitions have closed, PointsBet operations will be rebranded to “PointsBet, a Fanatics Experience”. 

Customers in Illinois and Indiana will also witness the rebrand in the coming months, Fanatics said, but PointsBet’s operating businesses in those states will continue to be operated by PointsBet USA until Fanatics closes its acquisitions there later this year.

Fanatics added that the acquisition complements the growth and diversification that its Betting and Gaming division has accomplished over the past two years.

In addition to its sports betting brand, platform and technology, Fanatics will also add PointsBet’s online casino platform to continue the development of its iGaming operations scheduled for launch later this year.

Further, PointsBet’s proprietary Banach technology – included as part of the acquisition – will be integrated into the Fanatics Sportsbook app currently available in Maryland, Massachusetts, Ohio and Tennessee.

New and current PointsBet customers will be able to “become part of the Fanatics family,” the business added, with new promotions planned for the upcoming American football season.

Management commentary

PointsBet USA will continue to employ engineers, customer service teams, traders, marketing and compliance teams with a new influx of operating capital from Fanatics Betting and Gaming, the company said. 

Meanwhile, Johnny Aitken will continue as the CEO of PointsBet USA.

“We are excited about what we are building at Fanatics Betting and Gaming and this acquisition accelerates our plans,” said Matt King, CEO of Fanatics Betting and Gaming. 

“We have a 10-year plan that focuses on the customer and not market share. 

“We are going to acquire customers efficiently, allowing us to return savings to customers by investing in the customer experience at Fanatics Sportsbook and PointsBet, a Fanatics Experience.” 

PointsBet’s remaining business

In its latest annual earnings report, PointsBet explained that it would continue to focus on its core Australian business, which generated A$211.7m in net win during the financial year 2023, as well as its Canadian business, which generated A$18.3m.

With the Canadian operations still far behind its Australian business, PointsBet CEO Sam Swannell said the company saw the regulated province of Ontario – as well as the possibility of other regulating provinces, such as Alberta – as its key growth drivers moving forwards.

Those comments came amid a 1.7% reduction in its Australian revenue in FY23, as a result of a tough comparative period which saw outsized earnings for online operators in Australia during the Covid-19 pandemic.

Despite the reduction in revenue, which took place across the Australian market, Swannell suggested that the business had in fact increased its market share in Australia during FY23.

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