Fanatics bookmaker moves towards NYC license through PointsBet deal
Date: 2023-08-07 Author: Kirill Zagoruyko Categories: SPORTS BETTING
Bookmaker Fanatics has come close to securing the coveted sports betting license in New York State. The ambitious move came after Fanatics acquired PointsBet's US assets, sparking interest from regulators and industry observers alike.
Fanatic Influence Into PointsBet Acquisition and Deep Analysis at NYSGC Gathering
The New York State Gaming Commission (NYSGC) met on August 3 to discuss the implications of Fanatics' acquisition of PointsBet's US operations. CEO Robert Williams shed light on the chart, detailing how the Fanatics initiated the process by filing an application in the spring, which led to the subsequent filing of the necessary paperwork with the NYSGC to transfer the New York sports betting license to PointsBet.
NYSGC Chairman Brian O'Dwyer stressed the importance of the situation, saying that while the acquisition itself may not require an outright transfer of licenses, the change of control deserves increased attention. O'Dwyer stressed that fanatics will go through rigorous testing to evaluate their suitability to work with the license. The results of this study will determine the commission's decision, which is expected to be taken at the upcoming September meeting.
The fanatics' journey into the world of sports betting in New York was a tale of perseverance and strategic maneuvering. Just a couple of years ago, Fanatics tried to enter the state but was overshadowed by competitors when licenses were issued to nine online bookmakers. However, the recent acquisition of PointsBet's US division for a hefty $225 million has rekindled Fanatics' drive to enter the New York market.
PointsBet Acquisition of Fanatics Brings Technological Benefits
Notably, Fanatics' acquisition of PointsBet also brings technological advantages. Fanatics intends to leverage PointsBet's existing technology, internal controls and reporting to ensure a smooth transition for players. However, they will opt for external assistance in resolving customer service complaints, which is a departure from the PointsBet approach.
While NYSGC approval seems imminent, the actual launch of the Fanatics Sportsbook in New York City could take some time. PointsBet's current preliminary chart suggests a full transition could be completed by early spring 2024. The upcoming PointsBet EGM on August 29 will likely pave the way for the distribution of capital to shareholders.
Fanatics' acquisition of PointsBet's US operations was not without its problems. In May, the Fanatics struck a deal with PointsBet for $150 million, but unexpectedly DraftKings contested the deal with a $195 million counteroffer in June. The fanatics then responded with $225 million, securing the win. Eventually the DraftKings dropped the pursuit.
Fanatic Influence Into PointsBet Acquisition and Deep Analysis at NYSGC Gathering
The New York State Gaming Commission (NYSGC) met on August 3 to discuss the implications of Fanatics' acquisition of PointsBet's US operations. CEO Robert Williams shed light on the chart, detailing how the Fanatics initiated the process by filing an application in the spring, which led to the subsequent filing of the necessary paperwork with the NYSGC to transfer the New York sports betting license to PointsBet.
NYSGC Chairman Brian O'Dwyer stressed the importance of the situation, saying that while the acquisition itself may not require an outright transfer of licenses, the change of control deserves increased attention. O'Dwyer stressed that fanatics will go through rigorous testing to evaluate their suitability to work with the license. The results of this study will determine the commission's decision, which is expected to be taken at the upcoming September meeting.
The fanatics' journey into the world of sports betting in New York was a tale of perseverance and strategic maneuvering. Just a couple of years ago, Fanatics tried to enter the state but was overshadowed by competitors when licenses were issued to nine online bookmakers. However, the recent acquisition of PointsBet's US division for a hefty $225 million has rekindled Fanatics' drive to enter the New York market.
PointsBet Acquisition of Fanatics Brings Technological Benefits
Notably, Fanatics' acquisition of PointsBet also brings technological advantages. Fanatics intends to leverage PointsBet's existing technology, internal controls and reporting to ensure a smooth transition for players. However, they will opt for external assistance in resolving customer service complaints, which is a departure from the PointsBet approach.
While NYSGC approval seems imminent, the actual launch of the Fanatics Sportsbook in New York City could take some time. PointsBet's current preliminary chart suggests a full transition could be completed by early spring 2024. The upcoming PointsBet EGM on August 29 will likely pave the way for the distribution of capital to shareholders.
Fanatics' acquisition of PointsBet's US operations was not without its problems. In May, the Fanatics struck a deal with PointsBet for $150 million, but unexpectedly DraftKings contested the deal with a $195 million counteroffer in June. The fanatics then responded with $225 million, securing the win. Eventually the DraftKings dropped the pursuit.
