Online retailer Fanatics has agreed a $150 million deal to purchase the US assets of Australian sports betting operator PointsBet.
Fanatics, the world’s largest sports apparel and collectibles company, has been planning to get into the sports betting business for years.
It hired former FanDuel chief executive Matt King to head its sports betting division – Fanatics Betting and Gaming – last summer.
An acquisition was always on the cards, and it has previously been linked with deals to purchase Tipico and BetPARX.
However, PointsBet proved to be an attractive target after the Melbourne-based company decided to put its US business on the market.
PointsBet is renowned for offering two distinct types of wagering – fixed-odds betting and PointsBetting, which is akin to going short or long on stocks.
However, it forecast a loss of between $77 million and $82 million for the second half of the year, as it is investing heavily in marketing to compete with rivals like FanDuel and DraftKings.
Fanatics, which has a private valuation of $31 billion, began testing its app in Ohio and Tennessee earlier this month.
“This is a 10-year journey,” said King at the recent SBC Conference. “We’re going to move very methodically through that 10-year journey. And by doing that and taking that approach, it allows you to be a bit more considered in your decisions. You can kind of move slower, slightly slower today, in order to move fast later.”
PointsBet is planning to hold a shareholder vote on the deal towards the end of June.
