New York Regulators Could Sign Off on Fanatics-PointsBet Sports Betting Deal by September

New York is still the biggest legal sports betting market in the U.S., so getting a green light to take action there is a big deal for Fanatics.

Geoff Zochodne - Senior News Analyst at Covers.com
Geoff Zochodne • Senior News Analyst
Aug 3, 2023 • 16:21 ET • 2 min read
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New York regulators may bless a major legal sports betting deal before the leaves change color.

The New York State Gaming Commission (NYSGC) met Thursday and discussed the acquisition of the U.S. assets of PointsBet by Fanatics, which has already been approved by the former’s shareholders

NYSGC Chair Brian O'Dwyer said during the meeting that while the acquisition does not require a transfer of licenses — as Fanatics is buying a PointsBet-related entity that holds the permit — the gaming commissioners believe “increased scrutiny” of the situation is required because control of the license is effectively being transferred.

“To that end, the staff has and will require Fanatics to undergo a thorough examination of character and fitness to operate the license,” O’Dwyer said. 

Keeping the regulatory train on the track

When that examination is complete, the commission will consider the findings and recommendations of staff and make a final determination, which will likely happen at the regulator’s September meeting, O’Dwyer added. 

The NYSGC review is big for Fanatics because the New York sports betting scene is the biggest legal market in the U.S. right now, and obtaining access to that market was likely a significant reason why Fanatics shelled out $225 million for the U.S. assets of PointsBet. Fanatics also bid for a mobile sports betting license in New York a few years ago but lost out to others, including PointsBet.

PointsBet noted in a recent presentation for investors that teams from the two companies have been "engaging well" on the transition and integration of PointsBet USA into the Fanatics operation.

“Both organizations are very excited about what a combination of the Fanatics brand, database and team together with PointsBet's technology, market access, and team can achieve in the US gaming market,” the presentation noted. “The US state by state regulatory approval processes across our sports betting, iGaming and ADW (racing) jurisdictions is tracking as planned.” 

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Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than three years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff’s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

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