Fanatics has just agreed to a major purchase that could be instrumental in its future in mobile sports betting, as the company has officially purchased PointsBet Sportsbook’s U.S. operations. This announcement comes at a time when the Fanatics Sportsbook is preparing begin its expansion across the country.
Heading into the purchase, PointsBet is preparing for some potential losses this year as the sports betting industry continues to become more competitive. The mobile sportsbook has also been in the news recently after experiencing a phishing attack.
Fanatics To Purchase PointsBet’s U.S. Business
A new deal has been announced that could shake up the sports betting world, as Fanatics Betting and Gaming looks to purchase the U.S. operations of Australian-based PointsBet Sportsbook. According to CNBC, the deal is worth approximately $150 million.
One of the most interesting parts of the deal is the access to 15 states or more that Fanatics will gain. PointsBet Sportsbook Online is currently available in some major sports betting markets, such as Pennsylvania, Michigan, Ohio, New Jersey, Illinois, and New York. The ultimate plan is reportedly for Fanatics to go live in the majority of states with PointsBet Online Sportsbook by the kickoff of the 2023-34 regular season. With shareholders expected to vote on the proposed purchase in June, more news on this move will come soon.
PointsBet Sportsbook is expecting to experience some losses in the rest of the year. For the second half of 2023, PointsBet has anywhere between $77 million and $82 million in projected losses. NBC Universal, which had an equity stake in PointsBet prior to the purchase announcement, will still benefit from its previously established deal. NBC Universal will also continue to have a stake in PointsBet’s Australian offerings.
Who should be on this list that isn’t? 🤔 pic.twitter.com/cble5FFW3z
— Fanatics (@Fanatics) April 28, 2023
Fanatics Preparing For Full Sportsbook Rollout
Fanatics is known for its sports memorabilia, with merchandise available for sporting leagues such as NFL, NHL, MLB, NBA, NCAA, MLS, WWE, WNBA, and much more. The company as a whole is expected to hit $8 billion in 2023 revenue, with Fanatics privately valued at #31 billion.
In addition to standard sports memorabilia, Fanatics is heavily involved in sports trading cards, with a $500 million acquisition of Topps in 2022. Fanatics Betting and Gaming is the company’s wagering arm focused on mobile sports betting, retail sports betting, and online casino gaming.
Fanatics Sportsbook, the online betting app from the platform, hasn’t fully released yet, despite some beta testing that recently expanded into the Tennessee and Ohio sports betting markets. In the meantime, a Fanatics Sportsbook retail betting location has opened its doors at FedEx Field, the stadium that holds Washington Commanders home games.
If you could bring back one NBA jersey from the 90’s which one would you pick? pic.twitter.com/3HASrjP2vV
— Fanatics (@Fanatics) April 28, 2023
PointsBet Users Recently Received Phishing Scheme Emails
Last week, PointsBet Sportsbook users began receiving strange emails saying that, if they sent over crypto currency, the sports betting operator would double it.
The emails (which featured numerous misspellings) were from a third party, and part of a cryptocurrency phishing scam. This led to a stop to the sports betting site’s email marketing for a short time, with PointsBet sending users a confirmation email to delete these cryptocurrency-related issues and telling them that their main account management hadn’t been compromised.
PointsBet isn’t the only online sportsbook to experience such an attack, with both DraftKings Sportsbook and BetMGM Sportsbook facing cybersecurity threats in the past year.