Fanatics Ups Offer For PointsBet, DraftKings Out

This story was published more than 1 year ago.

Today Fanatics Betting and Gaming announced that they've submitted a new offer to purchase the US-facing business of PointsBet, with the new offer coming in at $225 million.

The company reached an agreement to purchase the business in May for $150 million, but DraftKings recently jumped in with an offer of $195 million. This caused Fanatics to increase their bid. As a result, DraftKings has confirmed that they're out on the purchase and will continue to operate their own brand in the United States and Canada.

The terms of the deal will see Fanatics making a $175 million payment at the initial completion of the deal and will make an additional $50 million payment during the subsequent completion. PointsBet will have a shareholder vote on the purchase on June 30th. Yesterday, the company asked to be taken off the Australian exchange so a vote can take place.

In a statement, PointsBet Chairman Brett Paton said, "Following the receipt of a non-binding indicative offer for our US business from DraftKings, the PointsBet team entered negotiations with both parties.

"The improved proposal delivers PointsBet shareholders a 50% or $75.0m increase to the acquisition price originally agreed.

"The board unanimously supports the improved proposal from FBG, which provides a superior price plus certainty. FBG conducted their diligence process and negotiations in a highly professional manner at all times."

In a statement, DraftKings said, "The company is no longer pursuing the acquisition of the US business of PointsBet Holdings. The company thanks PointsBet for their time and access over recent weeks."

Casino Listings is following this story and will update readers as appropriate.

About the author

Dustin Jermalowicz // News Editor
Dustin Jermalowicz
Dustin has a long-standing passion for gambling. He has been writing professionally on the subject and breaking industry news for Casino Listings since 2011. His favorite casino games include Blackjack, Poker, and Hi/Lo. A proud native of Detroit, Dustin currently lives in Michigan.