FansUnite has finally achieved their goal of entering the gambling market with the acquisition of PointsBet Sportsbook’s U.S. business. This deal will have significant implications across the country, and it is reasonable to assume that the effects will also extend to Las Vegas sports betting.
Information on the PointsBet Sportsbook great deals to Fans
This sale of PointsBet Sportsbook VA to Fanatics seems like an ideal fit. Fanatics CEO Michael Rubin has been pursuing an opening in the sports betting landscape. PointsBet Sportsbook, meanwhile, has had many months of searching for a new buyer for its business in the United States.
A deal was announced earlier this week through a joint statement on Twitter. PointsBet will be paid $150 million, and while the agreement is not finalized yet, both sides are optimistic.
“Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s U.S. business,” the companies said in a joint statement. “While there are still some steps in the process to complete the acquisition, both are confident in the outcome. Fanatics Betting and Gaming and PointsBet will provide more details of the proposed deal and regular updates in the coming days.”
According to CNBC, Fanatics could gain access to sports betting licenses in 15 different states with this deal. Fanatics aims to have access to these states where PointsBet has been in operation by the start of the 2023-24 NFL season.
How can this affect Virginia wagering?
There is no question that Rubin is set to attack the new business with extreme passion and determination. Fanatics has positioned itself to make an impact on the sports betting industry.
“We could be the number one player in the world in the business in 10 years,” Rubin told Sports Business Journal recently. “That may sound ambitious for someone who’s not in the business today, but our strategic advantages are that we are one of the best-known digital sports companies and we have so many fans.”
Fanatics has the interest and the resources to become one of the big players. This focus could provide the company a vehicle to get them there.
“This is a 10-year journey,” Matt King, the CEO of Fanatics Betting, said at the SBC Conference earlier this month. “We’re going to progress very methodically through that 10-year journey. And by doing that and building that foundation, it allows you to be more deliberate in your decisions. You can kind of move slower, a bit more deliberately now, in order to move fast later on.”
Even more hoops to be able to jump by way of
For Rubin to make this deal legally viable, he sold his minority share in the NBA’s Philadelphia 76ers. No National Basketball Association executive is allowed to operate or own a betting platform, according to the league’s collective bargaining agreement.
“As the Fanatics business has grown, so have the obstacles I have to navigate to ensure the new businesses don’t conflict with my responsibilities as part-owner of the Sixers,” Rubin said in a statement posted on Twitter, announcing the sale of his 76ers stake. “With the launch of our trading cards and collectibles business earlier this year – which will have individual contracts with thousands of athletes worldwide – as well as a soon-to-launch betting operation, these new businesses could directly conflict with the ownership rules of sports leagues. Given these realities, I will sadly be selling my share in the Sixers and transitioning from part-owner back to lifelong fan.”
To complete this deal, PointsBet Sportsbook will be expected to hold a vote among shareholders next month. Once that vote is completed, the deal should be officially finalized.
PointsBet Sportsbook is based in Australia, and this deal will likely involve business in the United States. PointsBet Sportsbook is expected to retain the Australian business.
According to CNBC, NBCUniversal will also be bought out of their equity stake of 4.9 percent. The company purchased that stake back in 2020.
PointsBet has mulled over a deal for months
PointsBet Sportsbook experienced the early termination of partnerships with multiple college athletic divisions. Negotiations with the University of Colorado and the University of Maryland were ended earlier this year due to pressure from lawmakers, educators, parents, and others. Legislation was also filed in Maryland to restrict gambling platforms and their deals with educational institutions.
As a result of these challenges and the redirection of business to other betting platforms, PointsBet Sportsbook suffered significant losses in the second half of the year. According to CNBC, these losses are estimated to be between $77 million and $82 million.
While PointsBet Sportsbook currently has a strong balance sheet, they acknowledge that they may need additional capital in the future. The company is carefully considering various strategic opportunities to ensure value accretion for investors.
