Leading Australian sports wagering operator, Point’sBet, has agreed to sell its operations in 15 US states to global sports betting corporation Fanatics for a reported $225 million ($150 million US). The decision comes after Point’sBet faced intense competition in the US market, making it challenging to achieve the desired market share, despite comprehensive promotional campaigns. Point’sBet CEO Sam Swanell highlighted the high costs associated with operating in the state-by-state US market, emphasizing the need for scale.

The sale to Fanatics, a Florida-based commercial and sports betting giant valued at $46.5 billion, was chosen due to its favorable transaction structure. The deal is expected to help Point’sBet reduce its projected losses of up to $123 million by the end of the year to $21 million upon completion of the transaction. Swanell emphasized the importance of preserving capital and highlighted that Fanatics would take over the investment into the US business, with Point’sBet covering a portion of the costs.

With the US operations sold, Point’sBet will focus on its Australian and Canadian businesses, merging them into the entity known as PointsBet’s RemainCo. Swanell expects the consolidated entity to achieve break-even status on an EBITDA basis within 12 months after the termination of the US business. While acknowledging headwinds in the Australian market, Swanell expressed confidence in the company’s ability to grow its market share and create value for shareholders.

In a groundbreaking move, the Fanatics Betting and Gaming (FBG) division of renowned sports retail powerhouse Fanatics has struck a meaningful deal to acquire the highly sought-after PointsBet US division. This landmark acquisition, valued at $150 million, signifies the convergence of two industry leaders and sets the stage for unprecedented growth and innovation in sports betting. With their combined expertise and resources, FBG and PointsBet are poised to revolutionize the US betting landscape, offering bettors unparalleled opportunities and an unrivaled betting experience. This strategic collaboration sets the foundation for a new era of sports wagering, powered by the visionary minds behind Fanatics and the cutting-edge technology of PointsBet. Prepare for a thrilling journey into the future of betting as FBG and PointsBet join forces to redefine the boundaries of the sports gaming industry. The agreement is subject to shareholder approval and regulatory conditions. PointsBet will retain its Canadian and Australian business operations, continuing as an Australian Stock Exchange-listed company.

In addition to preserving its cutting-edge proprietary sports wagering, racing, and iGaming platform, Point’sBet will continue to hold the exclusive rights to leverage the innovative Banach technology assets. This unique technological advantage allows Point’sBet to deliver an unparalleled betting experience to its users, combining advanced analytics and state-of-the-art algorithms to provide precise odds and enhance the overall wagering process. By harnessing the power of the Banach technology assets, Point’sBet remains at the forefront of innovation in the sports betting industry, solidifying its position as a leading player in the market. Existing commercial commitments to NBCUniversal will be transferred to FBG.

Point’sBet shareholders will vote on the proposed acquisition, with the company’s board unanimously recommending approval. If the transaction is successful, Point’sBet plans to distribute the net sale proceeds to shareholders, along with most of its corporate cash reserves surplus to the needs of the remaining business. The estimated distribution per share is expected to be approximately AU$1.07 to AU$1.10.