New York regulator could approve Fanatics’ acquisition of PointsBet’s U.S. assets by early September. 릴게임 On Thursday, the New York State Gaming Board met to discuss sports betting contracts, which have already been accepted by PointsBet shareholders. The regulator noted that more scrutiny is needed in this situation.
PointBet’s contract to acquire the U.S. division was announced in May 2023 and will cost approximately US$150 million to complete. The deal then raised questions about operators belonging to major iGaming markets, including NY in the United States and Ontario in Canada, although the former’s shareholders voted to approve the sale in June 2023.
At the meeting, NYSGC Chairman Brian O’Dwyer noted that a transfer license is not necessary because Panic acquires Pointbet-related companies that originally hold the permit, but gambling regulators noted that more scrutiny is needed on the situation because the licenses are being transferred effectively.
Mr. O’Dwyer said employees must and will continue to undergo a thorough review of the nature and suitability of buyers to operate licenses in New York. Upon completion of the review, the regulator said it will evaluate the findings and recommendations of its employees and make a final decision, which is most likely to occur at the committee’s September meeting.
Since Empire State’s online sports betting mobile market is one of the largest legal markets in the United States, regulators’ assessments hold tremendous importance to fanatics. This is likely one of the reasons why the company spends a lot of money on acquisitions. The company also applied for a license in the state, but did not finally cut it.
In a recent presentation, PointsBet shared that the teams of the two companies are doing well to transform the operator’s U.S. unit into a Panatics portfolio. The company also said the two companies are eager to combine the Fanatics brand, database and team with one of PointsBet’s technologies, market access and teams.
In the north, it operates in Ontario’s regulatory marketplace, which offers online gambling and sports betting, where it offers products through PointsBet Canada. Shortly after the market launch, the operator shared that the activity exceeded expectations. Early data showed local betting companies were quite keen on vertical sales of the company’s sportsbooks.
However, according to Sam Swanell, managing director and group CEO, the acquisition of Fanatics will not affect its operations in Ontario. He said the level of cash investment the company requires in the U.S. to reach profitability is significantly different from that in Canada. He expects the operator to be on the road to profitability within 18 to 24 months without additional funding.