PointsBet shareholders approved the sale of the company’s U.S. operations to Fanatics, which is preparing to put the pedal to the metal on its legal sports betting business.
Voting results from Friday's "Extraordinary General Meeting" for PointsBet Holdings Ltd. show 98.24% of the Australia-based bookmaker's shareholders voted in favor of selling its U.S. business to Fanatics for $225 million.
“Approval today will facilitate a significant return of capital to PointsBet shareholders while retaining exposure to PointsBet’s leading Australian Business, growing Canadian Business and world class technology assets,” Chairman Brett Paton said during the EGM.
In explaining PointsBet's rationale for the sale of its U.S. assets, Paton said that "despite having some strategic success the costs of competing against the largest companies of their type in the world meant the business would not be cash flow positive in the near term."
'A pivotal moment'
Fanatics, the owner of a massive merchandise business and Fanatics Sportsbook, said in a statement that it was “thrilled” to receive shareholder approval for the deal. The company was also forced to fight off DraftKings for the transaction, as the latter proposed a $195-million offer of its own for PointsBet USA that ultimately fell short.
The sign-off now frees up Fanatics to seek further approvals from regulators in the U.S. as it aims to grow its nascent business of running online sports betting sites and apps.
Fanatics will gain access to additional U.S. markets when it takes possession of PointsBet USA, such as a costly license to take bets in New York. It is currently offering mobile wagering in Massachusetts, Ohio, and Tennessee.
“This is a pivotal moment for Fanatics Betting and Gaming that will accelerate our growth in the legal online sports betting, advance deposit wagering and iGaming markets in the United States,” the company said in a statement. “Pending regulatory approvals in the various states in which PointsBet operates, we will have more details to share in the coming weeks on how the acquisition of PointsBet US businesses will bring to life our unique vision for Fanatics Betting and Gaming.”
