Australian sports betting company PointsBet has announced that its US business will be acquired by Fanatics for $150 million (AU$222 million). The deal is expected to close in the first quarter of 2022, subject to regulatory approval.
Fanatics, a sports merchandise company, plans to use PointsBet’s technology and expertise to launch a new sports betting platform in the US. The platform will be integrated into Fanatics’ existing app and website, which already offer a range of sports merchandise and memorabilia.
PointsBet has been operating in the US since 2019, when it launched its first sportsbook in New Jersey. Since then, the company has expanded to several other states, including Colorado, Illinois, Indiana, Iowa, Michigan, and Virginia. PointsBet’s US business generated $82 million in revenue in the 2021 financial year, up from $27 million the previous year.
The acquisition is expected to benefit both companies. Fanatics will be able to offer its customers a new and exciting way to engage with sports, while PointsBet will gain access to Fanatics’ vast customer base and marketing resources.
This is not the first time that Fanatics has ventured into the world of sports betting. In 2020, the company acquired an ownership stake in sports betting company FanDuel. However, the acquisition of PointsBet’s US business marks Fanatics’ first foray into operating its own sports betting platform.
The US sports betting market is rapidly growing, with more and more states legalizing sports betting every year. According to a report by Grand View Research, the US sports betting market is expected to reach $15.8 billion by 2028, up from $2.9 billion in 2020.
PointsBet’s acquisition by Fanatics is just one example of how companies are looking to capitalize on this growing market. As more states legalize sports betting and more companies enter the space, it will be interesting to see how the industry evolves and who comes out on top.
