Fanatics Snaps Up PointsBet US in $150 Million Deal

Fanatics, a powerhouse in sports merchandise and digital collectibles, is snapping up the US business of sports betting operator PointsBet for $150 million. Bloomberg reports that the deal will boost Fanatics’ entry into the booming US sports betting market, which it has been eyeing for a while.

In a press release announcing the sale, PointsBet said that it is the seventh-largest sports betting company in the country, out of more than 60 rivals.

PointsBet said that it faced several challenges and demands in the highly regulated and competitive industry, which led to the decision to enter into this deal.

The US market is tough and operators need to spend a lot on marketing, which cuts into their profits. PointsBet US couldn’t match the advertising budgets of the big players like DraftKings, FanDuel, and BetMGM. On the other hand, Fanatics has a huge advantage of having a lot of sports fans who buy its products. These customers could also become bettors when they see the ads for the betting division.

PointsBet US is one of the top 10 sports betting operators in America, which confirms the recent predictions by Morgan Stanley. The financial analysts said that the US gambling giants would squeeze out smaller players.

Despite selling its US business, PointsBet will continue its operations in Australia, where it is based, and in Canada.