DraftKings, a popular sports betting and daily fantasy sports company, has won the bid for PointsBet US Business over Fanatics. This acquisition is a significant move for DraftKings, as it will allow them to expand their sports betting offerings and increase their market share in the United States.
PointsBet is an Australian-based sportsbook that entered the US market in 2019. Since then, they have quickly gained popularity among sports bettors due to their unique PointsBetting system. This system allows bettors to win or lose more money based on how accurate their bet is, rather than simply winning or losing a set amount.
Fanatics, on the other hand, is a well-known sports merchandise company that has been looking to enter the sports betting industry. They had partnered with Boyd Gaming to create a sports betting platform, but ultimately lost out to DraftKings in the bid for PointsBet US Business.
The acquisition of PointsBet US Business will give DraftKings access to PointsBet’s technology and customer base. This will allow them to offer more betting options and increase their revenue. It will also help them compete with other major players in the sports betting industry, such as FanDuel and BetMGM.
DraftKings has been making strategic moves to expand their business in recent years. In 2020, they went public through a merger with a special purpose acquisition company (SPAC). They have also made several acquisitions, including the purchase of SBTech, a sports betting technology provider.
The sports betting industry has seen significant growth in recent years, especially since the Supreme Court overturned a federal ban on sports betting in 2018. According to a report by Grand View Research, the global sports betting market size was valued at $85.05 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 10.4% from 2021 to 2028.
Overall, DraftKings’ acquisition of PointsBet US Business is a significant move for the company and the sports betting industry as a whole. It will allow DraftKings to expand their offerings and increase their market share, while also providing more options for sports bettors. As the industry continues to grow, it will be interesting to see how DraftKings and other companies adapt and innovate to stay ahead of the competition.
