PointsBet Shareholders Approve Sale of US Operations to Fanatics Betting and Gaming

Stockholders of PointsBet have decisively voted to sell their American operations to Fanatics Betting and Gaming (FBG).

The vote occurred on June 30th, with a remarkable 99.16% of shareholders in favor of the agreement, and only a small fraction, 0.84%, opposed.

The PointsBet board of directors had already endorsed the deal and urged stockholders to do the same.

This vote marks the beginning of the next stage of the sales process. However, neither PointsBet nor FBG has provided a specific date for when the transaction will be completed.

**A More Lucrative Offer**

FBG, a subsidiary of the sports behemoth Fanatics, presented a significantly more attractive offer this week, valued at $225 million.

FBG had previously agreed to acquire PointsBet’s US operations for $150 million back in May.

But then, DraftKings entered the picture and proposed a higher price of $195 million. PointsBet indicated they would engage in discussions with DraftKings because they believed this could be a more advantageous deal.

After FBG submitted their enhanced offer, DraftKings decided to withdraw from the agreement.

FBG is extremely pleased with the outcome of the vote.

FBG is **thrilled** with the voting outcomes, stating that investors selected to endorse the proposition.

An FBG representative stated in a declaration that this is a **pivotal** moment, adding, “We definitively concluded this transaction and anticipate collaborating with the PointsBet team to finalize the remaining acquisition particulars.” “This is a **crucial** juncture for FBG, propelling our expansion in the US legal online sports betting, prepaid deposit betting, and online gambling markets.”

The representative further stated, “We will divulge more specifics in the upcoming weeks regarding how the acquisition of PointsBet’s US operations will realize our distinct vision for FBG, subject to approval from regulatory bodies in the states where PointsBet functions.”

**Addressing Ambiguity**

Prior to today’s vote, PointsBet Chairman Brett Paton elucidated to investors the rationale behind divesting the US operations.

Paton indicated that despite PointsBet’s strategic triumph in the US, the expense of vying with prominent brands implied that the business would not generate revenue in the immediate future.

Paton stated, “Persisting to operate the US business would necessitate substantial capital and additional funding.” “This transaction eliminates that uncertainty.”

That being said, numerous well-known brands with extensive databases have also encountered difficulties. One of them has already expended approximately $2.

Although PointsBet possesses a powerful brand and a vast collection of data, their online venture has poured in a hefty $5 billion and still only commands a small portion of the market. Other online players have also struggled to gain traction, with many businesses closing their doors.

While PointsBet has been a competitor in the American market, particularly utilizing their technology to deliver a top-tier sports betting experience, their capacity to reach significant size and maintain stable operations has been tested.

“We operate in a highly competitive environment and face constant financial pressure to fund the business until it becomes profitable,” the company stated.

PointsBet will continue to operate in North America. The proposed sale agreement implies that PointsBet will keep their Canadian and Australian operations.

Furthermore, PointsBet will retain ownership of their unique sports betting and online gambling platform, currently employed in the Australian and North American markets.

“We will have a permanent, royalty-free license to use and further develop the Banach technology assets, including the underlying code that drives OddsFactory,” said Paton.

“This will enable us to apply PointsBet’s proprietary sports betting and online gambling platform to other areas outside the US in the future, as well as in the US 18 months after the proposed sale is finalized.”

The board believes that divesting the American operations is the most profitable course of action for investors, compared to alternatives such as maintaining the status quo.

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