Fanatics-PointsBet, Aristocrat-NeoGames deals could signal more ahead
Fanatics' splashy $150 million acquisition of PointsBet's U.S. business wasn't the only deal in gambling in recent days — and it could be a sign of more to come.
Fanatics on Sunday announced it has agreed to buy PointsBet's U.S. assets, a long-rumored tie-up. Fanatics CEO Michael Rubin previously vowed to launch sports betting operations in every state where it's legal, except New York.
Buying PointsBet gives Fanatics market access in New York, along with some 14 other states, and importantly its iGaming, or online casino games, business in Michigan.
For Fanatics, the deal really pays off when it comes to upfront licensing fees it would need to pay in new states.
"We're really able to save tens of millions of dollars worth of upfront license fees by leveraging PointsBets footprint versus going at it with a new footprint," said Matt King, Fanatics CEO of Betting and Gaming, on Monday.
King also said the cost to enter new markets has declined between 40% and 50% compared to where it was roughly three to five years ago.
Source: CNBC
