Fanatics Sportsbook Taking over U.S. Operations of PointsBet
Fanatics Completes PointsBet U.S. Acquisition: What Does it Mean?
Fanatics Sportsbook is set to take over the U.S. operations of PointsBet after completing its $225 million acquisition of the Australia-based sportsbook.
As Fanatics completes its PointsBet U.S. acquisition, it will also assume control of in-play technology developer Banach Technology and a license to use PointsBet’s tech platform.
Following the acquisition, Fanatics will be available to 95% of the online sports betting market in the U.S. by the end of the month. That includes expanding its reach to 20 states pending regulatory approvals, as well as online casinos in four states.
“The acquisition of the U.S. businesses of PointsBet has supercharged our expansion plans,” Matt King, CEO of Fanatics Betting and Gaming, said via Legal Sports Report. “In addition to our migration of PointsBet customers and technology to the Fanatics Sportsbook and Casino platform, we have also added an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business.”
As for PointsBet, its focus will shift primarily to its remaining platforms in Australia and Canada. While it will operate outside the U.S. market for the next 18 months, it is still possible it could return at some point.
Let’s dive in to what this could mean for both Fanatics and the betting industry as a whole in the U.S.
Fanatics Expanding Presence in Illinois
Upon completing its purchase, Fanatics plans to expand its presence in Illinois. PointsBet has been operating with a temporary permit in Illinois since launching in September 2020. Just last month, Fanatics was approved for licensing by the Illinois Gaming Board.
Illinois will be the 20th state in which Fanatics operates. It will compete alongside more than a half-dozen other online sportsbooks, including DraftKings, FanDuel, BetMGM, Caesars, ESPN BET, BetRivers, and bet365.
Online sports betting has been legal in Illinois since June 2020. As one of the country’s most populated states, it continually ranks near the top in both handle and tax revenue.
PointsBet saw its best results in Illinois, with $2 billion worth of wagers all-time in January alone. At the same time, its $586.7 million handle for 2023 was down 22.7% from the previous year, with Caesars positioning itself behind industry leaders FanDuel and DraftKings as the Land of Lincoln’s best online gambling sites. Meanwhile, PointBet’s annual revenue declined 1.3% to $53.1 million.
Like PointsBet, Fanatics will partner with Hawthorne Race Course. Betting is also available at off-track sites in Prospect Heights, Villa Park, and Crestwood.
Online sports betting is now legal in 30 states, plus the District of Columbia. North Carolina became the latest state to join the mix, launching just last month in time for the NCAA Tournament.
Unlike most other states, Illinois allows wagering on in-state colleges and universities. However, bettors can only place their bets at in-person sites.
Stay tuned for more updates on Fanatics completing its PointsBet U.S. acquisition.
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