Pointsbet Shareholders Vote in Favour of Fanatics Deal

Ben H / 7 July 2023

Australian-listed betting operator PointsBet has sold its US business to Fanatics Betting and Gaming. 99.16% of PointsBet’s shareholders voted in favour of the deal during the extraordinary general meeting and gave almost unanimous backing for the transaction to go ahead.

Before the voting took place, the PointsBet board had made it clear where it stood regarding the deal by unanimously approving it, instructing shareholders to vote in favour of the Fanatics deal too.

The process of moving to the next stage of the transaction has already started, but the two companies have not set a date by which the deal should be completed.

Fanatics Had to Increase Its Offer Because of a Last-Minute Rival Bid

Fanatics made its initial overture back in May when it offered US$150 million (A$224 million) for PointsBet’s US division. The betting operator accepted that offer, but a last-minute US$195 million (A$291 million) bid from DraftKings meant Fanatics had to up its bid to stay in the game, especially as PointsBet said it would accept the “superior” bid.

So, last week, Fanatics returned with an improved offer of US$225 million (A$336 million). That was too steep for DraftKings, who dropped out of the race, meaning it was up to PointsBet’s shareholders to finalize the deal with the only remaining bidder.

Fanatics Delighted with Shareholder Vote Outcome

Speaking after the PointsBet shareholder vote took place, a Fanatics spokesperson said that the company “moved decisively to close the deal” and was looking forward to finalizing all the details together with PointsBet.

The spokesperson added that the deal was “a pivotal moment” for Fanatics, and it would accelerate the company’s growth in the legal sports betting and iGaming markets where PointsBet operated. Fanatics is now waiting for approvals from regulators in those states.

The company spokesperson said they would come out with more details in the weeks that follow.

PointsBet US Couldn’t Operate at a Sustainable Scale

PointsBet decided to sell its US business despite experiencing growth in the markets it operated. However, according to PointsBet Chairman Brett Paton “continuing to operate the US business” also meant the company would have to raise “significant capital.” The Fanatics deal addressed “that uncertainty.”

Paton noted that PointsBet, as a challenger business, did its best “to get to scale”. The PointsBet chairman added that they were operating in a “high-cost” market and found it challenging to “operate at a sustainable scale.”

PointsBet will still have a presence in North America, as it continues to operate in Canada. After the US sale, some reports say that the company is no longer considering parting with its Australian business.

Related News

Horse Racing Tips

Keep up-to-date with all the best Horse Racing tips today.

AFL Betting Tips

Stay on top of your game this season by keeping up-to-date with our AFL betting tips.

NRL Betting Tips

Keep on top of your game this season by staying up-to-date with our NRL betting tips.

Racing Statistics

Want to know the odds of your horse winning? take a look at the horse racing statistics.

The verdant surroundings and rustic ambience of Warwick Farm lend a distinct racing charm. While racing takes held on 23 Wednesday afternoons, the Australia Day race meeting in January is the main event. The racecourse is at the centre of a community that ...

The Warrnambool Racecourse is located in the suburb of Warrnambool, in a picturesque valley with great natural viewing platforms. Warrnambool Racecourse is around 260 kilometres from Melbourne’s CBD.

Terang Racing Club, sometimes known as the Flemington of the Bush, has a long and rich history of racing in the southwest. The expansive course was designed by the same person who created the Flemington track. The facilities include a well-kept, vast grandstand with a...

Swan Hill Racecourse is located in the centre of the Murray Region, 340 kilometres from Melbourne.Swan Hill Racecourse June racing festival has earned a name for itself as the best country festival in the state, if not the entire nation. The advice is to book as soon as ...

Sale Racecourse has first-rate facilities, including a wholly climate-controlled Public Bar and Grandstand Bar open on race days.The take pleasure in being a community club that includes our surrounding townships. Because of their family-friendly ambience and specific ...

Ben H
Ben Harris is the Communications Manager for KRUZEY, an AFL expert, and writer. He has one daughter that he loves dearly and four children's books... [Read full bio]

Comments are closed.

Think. Is this a bet you really want to place? Set a deposit limit.

For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au