Fanatics Acquires PointsBet for $150M
May 15, 2023

Fanatics Betting and Gaming is buying the U.S. operations of Australian sportsbook PointsBet for $150 million in a move that will help the sports apparel and memorabilia giant gain market share in the American sports betting and online casino markets.


The companies said Sunday night that PointsBet shareholders will vote on the sale in late June. It still faces numerous regulatory approvals.


The sale comes as New York-based Fanatics is launching sports betting and online casino operations, hoping to draw on its database of 95 million customers, who have bought everything from jerseys to trading cards to autographed memorabilia from the online retailer.


Fanatics currently operates sports betting for its existing customers in Tennessee and Ohio and has a retail sportsbook in Maryland. PointsBet would add about 14 states to its reach, once state regulatory approvals are obtained.


Fanatics, known for its extensive range of official sports apparel and collectibles, has long been a go-to destination for fans around the world. With this acquisition, they are poised to revolutionize the fan experience by seamlessly integrating sports betting into their existing platform.


PointsBet, on the other hand, is renowned for its innovative technology and user-friendly interface, providing a dynamic and immersive sports betting experience. Their expertise in odds and risk management, coupled with an extensive selection of betting markets, has garnered them a dedicated following in the sports betting landscape.


By joining forces, Fanatics and PointsBet aim to create a unique and all-encompassing platform that offers fans a comprehensive range of services. This includes a seamless transition from browsing and purchasing official merchandise to engaging in thrilling sports betting activities, all within a unified and user-friendly ecosystem.


With Fanatics’ expansive reach and dedicated customer base, the integration of sports betting into their platform is expected to create unparalleled opportunities for fans. Through a streamlined and intuitive interface, enthusiasts will be able to explore and engage with their favorite teams and athletes on a whole new level.


Furthermore, the acquisition opens up exciting prospects for personalized experiences and tailored offerings. Fanatics’ extensive data on fan preferences and purchasing habits can be harnessed to provide personalized recommendations and promotions to enhance the overall user experience. This level of customization has the potential to deepen fan engagement and foster long-term loyalty.


The collaboration between Fanatics and PointsBet also holds immense potential for cross-promotion and collaborative marketing initiatives. The integration of betting odds, promotions, and exclusive offers within Fanatics’ platform will undoubtedly boost customer engagement and revenue generation.


It’s worth noting that this acquisition comes at a time of rapid growth in the sports betting industry. With the gradual legalization of online wagering in various jurisdictions, Fanatics is positioning itself at the forefront of this evolving landscape. By combining their extensive merchandise catalog with cutting-edge sports betting technology, they are poised to capture a significant market share and emerge as a dominant player in this space.


While the full extent of the Fanatics-PointsBet partnership is yet to be unveiled, fans can look forward to an exciting future that promises a comprehensive, immersive, and personalized sports experience like never before.


While the cost of acquiring and retaining new customers is a major expense for most sports books, Fanatics can reach its 95 million registered customers at no significant cost, CEO Matt King said at a sports betting conference last week in New Jersey.


He also said the company is not concerned about instant profitability, although its long-term goal is to build and sustain a profitable business.


Fanatics hopes to launch in its new states in time for the NFL season in September.

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