Earlier this month, Fanatics revealed it anticipates launching its full Fanatics Sportsbook in four states after a testing period was completed. Those states are Tennessee, Massachusetts, Ohio and Maryland. While this will enable the company to engage with new players, the acquisition of the US assets of the Australian-based gambling company, PointsBet, will enable it to significantly expand its reach.
One important jurisdiction for Fanatics Sportsbook is Pennsylvania. According to a recent report by Sports Handle, the company secured approval for the ownership change from the gambling regulator in the state, the Pennsylvania Gaming Control Board (PGCB). This approval means that Fanatics will be acquiring PointsBet Pennsylvania LLC. Yet, despite the green light for the ownership change by the PGCB, the launch of Fanatics Sportsbook in the state is yet to be confirmed.
The sale of US assets of PointsBet received the approval of the company’s shareholders back in June. The acquisition with a price tag of $225 million received a green light from an overwhelming majority of the shareholders, clearing the path for the takeover of the assets by Fanatics.
The sale of PointsBet’s US assets comes at a time when the company identified the competitiveness of the market and the investment required for further expansion. Although the company will offload its US-facing business, it will remain in control of its Canadian and Australian-facing businesses, allowing it to focus on their expansion.
Amid the plans for the sale of PointsBet’s US business, DraftKings tried to participate in the takeover by proposing $195 million, surpassing Fanatics’ initial bid of $150 million. Yet, Fanatics didn’t want to lose that fight and upped its bid for PointsBet’s US assets to $225 million.
US Assets Acquisition of PointsBet Allows Fanatic to Expand
While Pennsylvania is an important jurisdiction where Fanatics will set foot in light of the acquisition, the company will benefit from accessing more markets. Overall, PointsBet has established a presence in 12 US states. Thanks to the takeover, Fanatics will be able to access those states and establish its operations.
Besides Pennsylvania, the company will be able to roll out Fanatics Sportsbook in strategic markets with significant potential, including New York, New Jersey, as well as Illinois, among others. Still, before Fanatics can launch its services, it needs to secure the relevant approvals from regulatory bodies in each of the jurisdictions.
Although it is unclear when Fanatics Sportsbook will penetrate other markets, its entry in Pennsylvania is only a matter of time. The launch of the company’s sportsbook may happen just in time or during the upcoming football season. Once this happens, Fanatics will be able to quickly engage with new audiences, offering its supreme services.