The Fanatics logo is seen on a dugout wall ahead of a game between the Pittsburgh Pirates and the Milwaukee Brewers at PNC Park on July 3, 2022 in Pittsburgh, Pennsylvania. (Photo by Justin Burr/Getty Images)
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Fanatics has agreed to buy PointsBet’s US operations, marking the sports giant’s first major leap into US sports betting.
The deal, worth about $150 million, could be announced as soon as Sunday evening, according to the people, who asked not to be named. The deal will give Fanatics access to at least 15 states.
Only PointsBet’s U.S. assets were part of the deal, the people said. Fanatics will plan to fund some of the remaining cash flow burn of PointsBet, which has had to spend heavily on marketing to compete with larger rivals draft king Duel with fans. PointsBet forecasts a loss of $77 million to $82 million for the second half of the year.
NBC Sports acquired a 4.9% stake in PointsBet in 2020.
Fanatics has been in talks with a number of different sportsbooks over the past year as it maps out its path in the mobile betting space.
“It’s been a 10-year journey,” Fanatics Betting CEO Matt King told an SBC conference earlier this month. “In this 10-year journey, we’re going to move forward very methodically. By doing this and taking this approach, it allows you to think a little bit more about your decisions. You can go a little slower today and move faster for later. .”
Fanatics is a sports platform company with a private valuation of $31 billion. The company forecasts revenue of $8 billion in 2023.
Fanatics owns commercial properties, a sports trading card business, and is building a sports betting division. Company acquires legendary trading card company Topps $500 million last year.
Disclosure: NBCUniversal is the parent company of NBC Sports and CNBC.