PointsBet shareholders have this week approved the two phase payout plan from the $225 million agreed sale to Fanatics Betting and Gaming, a subsidiary of Fanatics Holdings, Inc after approving the sale on 30 June, 2023 for cash consideration of $225 million.

The breakdown of the deal is as follows:

  • First stage: Initial Completion – $175 million
  • Second stage: Subsequent Completion – $50 million

The chairman address outlined the intended distribution to shareholders for the net sale proceeds. The distribution is intended to be in the form of two Capital Return tranches:

  • The first Capital Return is expected to be approximately A$1 per share, totalling A$315 million (approximately) and is anticipated to be provided in mid-September
  • The second Capital Return, expected to be between A$125 million and A$143 million (which equates to between A$0.39 and $0.44 per Share) and is anticipated to be around March 2024.

Under contract, PointsBet is responsible for US operations until the end of March, 2024 when the sale is expected to be completed. Fanatics is currently live in Ohio, Tennessee, Maryland and Massachusetts. It has also been named as one of the Kentucky online sports betting operators, for which pre-registrations opened on 28 August, 2023. The official launch date for KE sports wagering is 7 September, 2023, just as the NFL season is set to get underway.

Fanatics has recently gained regulatory approval from the Pennsylvania Gaming Board to begin operations in The Keystone State after its acquisition. Although the operator has gained approval, it is yet to put a timeline on exactly when the transition from PointsBet will occur in Pennsylvania.

Once the full brand transition is complete and assuming all licenses are transferred without issue, Fanatics will be live in 17 states. The two biggest sports betting markets, New York and New Jersey have both told the companies that the deal must be finalized before any license transfer takes place.

Fanatics moved out of the beta testing phase of its mobile application earlier in this month. The beta phase lasted six months, and uses the PointsBet tech platform to power its sports betting engine.