Fanatics Sportsbook, the sports betting arm of the popular sports merchandise brand, is reportedly in talks to acquire the US business of the Australian sportsbook operator PointsBet.
Sources Claim Negotiations Are Ongoing Fanatics is in advanced negotiations to acquire the US assets and operation of troubled sportsbook operator PointsBet, including its innovative “PointsBetting” apparatus, Sports Handle reported today.
According to two separate unnamed high-level industry sources of the media, there is a high chance that a deal could be announced early next week, while a third source said that it would be surprising if there is not “quite a bit of paper” around the deal by then.
The possible acquisition of PointsBet will represent a major step for Fanatics in achieving its objective to gain market access in 12 US jurisdictions with legalized sports betting by the 2023 NFL season as part of a major plan to eventually become present in every major state with legal sports wagering.
With market access in 14 states, among which major sports wagering jurisdictions New York, Illinois, New Jersey, Michigan and Pennsylvania, and an in-house tech stack, PointsBet is viewed as a possible acquisition target by Fanatics and rumors of a possible deal for PointsBet’s US business initially surfaced in 2021.
Feeling the Heat from Competitors Problems for PoinstBet USA began surfacing in February when the operator withdrew from launching its dedicated app in Massachusetts due to the intense competition in the US online sports wagering space dominated by DraftKings, FanDuel and BetMGM.
In April, PointsBet hired a prominent financial advisory services firm to seek a buyer for its US business, stirring rumors that it is seeking a way out of the US, and later in the month, the operator officially stated its intent to divest its US and North American business.
PointsBet also suffered from industry setbacks and had to terminate betting partnerships with the University of Maryland and the University of Colorado, following the latest update of AGA’s Responsible Marketing Gaming Code for Sports Wagering.
The operator also became embroiled in a crypto phishing scam and had to temporarily halt its email communications system after it was breached by a third-party provider which sent emails involving an unsolicited crypto offer.
Fanatics Sportsbook became operational in its second and third US jurisdiction on May 1, after launching its mobile app in Tennessee and Ohio. Until then, the brand was present with only one retail location at FedExField in Maryland, where it launched in January.
Fanatics Sportsbook is also eyeing a June launch of its mobile app in Massachusetts, where it received its online sports betting license via Plainridge Park Casino.