As the NFL season edges closer, Fanatics Betting and Gaming has announced it will have a portfolio of brands live in 11 legal sports betting states prior to kickoff.
Fanatics has closed the first eight states following the prior acquisition of PointsBet USA for $225 million, announced on June 30, 2023, adding to the three in which it already operates. In each of the states in which Fanatic is transitioning the Pointsbet brand, it will be named “PointsBet, a Fanatics Experience”.
After receiving regulatory approval, Fanatics Betting and Gaming closed on PointsBet in the following states:
- New Jersey
- West Virginia
Fanatics itself is currently live in Ohio, Tennessee, Maryland and Massachusetts. It has also been awarded a temporary license for launch in Kentucky on September 28, 2023. Pre-registration for Kentucky online sports betting has already opened, and users will be able to pre-load wallets from 7 September, the same day that retail sports betting launches.
Next on the roadmap will see Indiana and Illinois sports betting follow the aforementioned states in transitioning to “PointsBet, a Fanatics Experience” by brand, although operations will continue to be run by PointsBet USA, “without interruption until Fanatics Betting and Games closes those states later this year”.
Fanatics’ primary business remains merchandise and collectibles. Users on its mobile sports betting application earn coins which can be redeemed against products on the digital store, as the company aims to create an all-encompassing circular economy. PointsBet customers will have the chance to become part of the ‘Fanatics family’ and the company has promised “new and engaging promotions”.
Until Fanatics receives regulatory approval and closes on a state-by-state level, PointsBet USA will continue to operate the business. Currently, PointsBet USA will continue to operate in states like Illinois, Indiana, Louisiana, Michigan, New York and Ohio. The release from the PointsBet will continue to employ engineers, customer service teams, traders, marketing and compliance teams with additional capital provided by Fanatics.
Matt King, CEO of Fanatics Betting and Gaming commented in a release: “We are excited about what we are building at Fanatics Betting and Gaming and this acquisition accelerates our plans. We have a ten-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.”
Earlier this week, PointsBet shareholders approved the proposed two phase payout plan. The first phase will see expected Capital Return of approximately A$1 per share, totalling A$315 million. The second is expected to be between A$125 million and A$143 million.