Fanatics Betting and Gaming (FBG) has closed on the first eight states in its previously announced acquisition of PointsBet’s US business.
Following regulatory approvals, the deal has now completed in major markets such as New Jersey and Pennsylvania. FBG has also completed in Colorado, Iowa, Kansas, Maryland, Virginia and West Virginia.
PointsBet confirmed that the Fanatics subsidiary has now paid the initial instalment of $175m of the $225m headline purchase price. The price was agreed in June 2023.
From today, customers in each of the eight states will see PointsBet rebranded to “PointsBet, a Fanatics Experience”. The rebrand will complete in Indiana and Illinois in the coming months.
PointsBet USA will continue to operate in Illinois, Indiana, Louisiana, Michigan, New York and Ohio. This will be until Fanatics is able to close on selected states individually.
“We are excited about what we are building at Fanatics Betting and Gaming and this acquisition accelerates our plans,” said Matt King, chief executive of FBG.
“We have a 10-year plan that focuses on the customer and not market share. We are going to acquire customers efficiently, allowing us to return savings to customers by investing in the customer experience at Fanatics Sportsbook and PointsBet, a Fanatics Experience.”
Growth and diversification
The development comes just over two months after PointsBet shareholders approved the $225m deal. This encompassed its US sports wagering and icasino businesses, as well its Banach Technology platform.
It also included a licence to use PointsBet’s proprietary technology platform.
At the start of the NFL season next week, FBG will have brands live in 11 legal sports betting states. PointsBet Casino will be live in four states.
FBG added that PointsBet USA will continue its employment efforts, hiring engineers, customer service personnel and marketing teams. An influx of operating capital will come in from FBG.
Johnny Aitken will continue as the CEO of PointsBet USA.
“This strategic acquisition complements the growth and diversification that Fanatics Betting and Gaming has accomplished over the past two years,” said FBG in a statement. “Fanatics Betting and Gaming will add PointsBet’s online casino platform, which is available in four states, to continue the development of Fanatics’ online casino offerings that is scheduled to launch later this year in the United States.
“In addition, Fanatics Betting and Gaming will begin integrating Banach Technology’s risk management platform and quantitative driven trading models into the Fanatics Sportsbook app that is now available for download on iOS and Android for sports fans in Maryland, Massachusetts, Ohio and Tennessee.”