Fanatics Sportsbook Advances Toward New York License via PointsBet Deal

Fanatics Sportsbook has inched closer to obtaining a coveted sports betting license in the state of New York. The ambitious move comes after Fanatics acquired the US assets of PointsBet, a development that has piqued the interest of regulators and industry observers alike.

NYSGC’s Meeting Unveils Fanatics’ PointsBet Acquisition Impact and Scrutiny

The New York State Gaming Commission (NYSGC) convened on August 3 to discuss the implications of Fanatics’ acquisition of PointsBet’s US operations. Executive director Robert Williams shed light on the timeline, detailing how Fanatics had initiated the process by submitting a bid in the spring, leading to the subsequent submission of required documentation to the NYSGC for the transfer of PointsBet’s New York sports betting license.

The NYSGC chair, Brian O’Dwyer, highlighted the significance of the situation, stating that while the acquisition itself might not necessitate a direct transfer of licenses, the shift in control merited heightened scrutiny. O’Dwyer emphasized that Fanatics would undergo a thorough examination, assessing their fitness to operate the license. This examination’s results will guide the commission’s decision, anticipated to be made during the upcoming September meeting.

Fanatics’ journey into New York’s sports betting landscape has been a tale of perseverance and strategic maneuvering. Just a couple of years ago, Fanatics sought entry into the state but was overshadowed by competitors when licenses were awarded to nine online sportsbooks. However, the recent acquisition of PointsBet’s US operations for a substantial $225 million has reignited Fanatics’ aspirations for the New York market.

Fanatics’ PointsBet Acquisition Brings Tech Gains

Notably, Fanatics’ acquisition of PointsBet also brings technological benefits. Fanatics intends to utilize PointsBet’s existing technology, internal controls, and reporting tools, ensuring a smooth transition for bettors. However, they will opt for external assistance in handling customer service complaints, a departure from PointsBet’s approach.

While the NYSGC’s approval seems imminent, the actual launch of Fanatics Sportsbook in New York could still take some time. PointsBet’s current tentative schedule suggests that the full transition could conclude by early spring 2024. The forthcoming extraordinary general meeting for PointsBet on August 29 will likely set the stage for capital distribution to shareholders.

Fanatics’s acquisition of PointsBet’s US operations did not go without issues. In May, Fanatics made a $150 million agreement with PointsBet but surprisingly DraftKings challenged the deal with a $195 million counteroffer in June. Fanatics then countered with $225 million, securing the victory. DraftKings eventually withdrew its pursuit.