There is a new disruptor in the sports betting industry — and it’s a big one.
Fanatics Inc. is finalizing a purchase of the U.S. operations of PointsBet for $150 million, the two sides announced on Sunday night.
“Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s U.S. business,” the companies said in a joint statement. “While there are still several steps in the process to complete the acquisition, both parties are confident in the outcome.”
The deal will allow Fanatics market access in over a dozen states in the U.S., including New York, Illinois, and Pennsylvania. A source told CNBC that Fanatics is hoping to have access to the majority of PointsBets’ markets by the NFL season, which begins on September 7.
The sides said that more details will come in the next few weeks, but PointsBet will hold a shareholder meeting in late June to address the sale. The betting company will maintain the operation of its Australia and Canada business.
The sports retailer is finally entering the sports betting space that it has been rumored to disrupt for a long time. One of the major triggers was when Fanatics owner Michael Rubin announced last June that he would be selling his stake in the Philadelphia 76ers.
Rubin’s main reason was the continued expansion of Fanatics and that he wanted “to ensure our new businesses don’t conflict with my responsibilities as part-owner of the Sixers.”
Fanatics, which is valued at $31 billion, has expanded from one of the top manufactures and retailers of sports brands into a holistic sports entertainment hub that houses merchandise, collectibles, and what looks like will soon be sports betting.