A new potential buyer for the US operations of PointsBet has emerged: DraftKings.
One of the largest brands in online sports betting in Maryland and across the country is offering $195 million to purchase PointsBet’s US business, well above the offer Fanatics made not long ago.
The offer comes just weeks before PointsBet shareholders were set to vote on the Fanatics transaction, and could muddy the waters of what looked like a done deal.
DraftKings enters bid to purchase PointsBet US business
In a release Friday morning, DraftKings said its proposal would be an “all-cash” transaction, and pointed out that it would be a 30% increase on what Fanatics had offered.
Fanatics had bid $150 million in mid-May for the US operations of PointsBet. As PointsBet had not been hiding the fact it was looking to sell, it appeared that would be a done deal. It still could go that way, but DraftKings is throwing one last Hail Mary.
Whether that is to block the growth of Fanatics, which launched recently in Maryland and a select few other states, is unknown. The release announcing the bid was more focused on the future growth of DraftKings.
“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s U.S. business,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.”
DraftKings, PointsBet and Fanatics all operating in Maryland
Maryland sports bettors currently have the option of all three sportsbooks involved in this potential deal.
Only FanDuel has taken more online sports bets than DraftKings in six-plus months of operation in Maryland. PointsBet is a distant sixth in Maryland online sports betting revenue.
One interesting part of a potential deal is that both DraftKings and PointsBet run online casinos in other states, while Fanatics does not currently have an online casino platform.