PointsBet shareholders approved the sale of the US branch of the company to Fanatics at the end of June but this week they also approved the two phases of the deal, which will be executed early next year.
During the first phase, Fanatics will pay $175 million, then the company will pay $50 million in a subsequent payment at a later date.
PointsBet Chairman Brett Paton stated in his address that PointsBet will distribute net proceeds from the deal to shareholders in two tranches. The first will amount to $204 million (A$315 million) and the second will come in mid-September.
The second tranche will come around March 2024 and amount to somewhere between $80-$92 million (A$1235-143 million).
The expected completion of the sale is scheduled for March 31, 2024. PointsBet is contractually responsible for continued US operations through March as the change in ownership finishes up.
In the meantime, Fanatics continues to transition key operator licenses from PointsBet over to its ownership in states like Pennsylvania.
Earlier in the year, Fanatics Betting and Gaming CEO Matt King projected as many as 20 states for Fanatics by the start of football season. When it comes to sportsbooks with the actual Fanatics name on them, the number appears to be landing on five markets: Ohio, Tennessee, Massachusetts, Maryland, and Kentucky, which is in pre-registration and launches on Sept. 28.
However, if you count the states where PointsBet is live and operational, the number swells to 17. With the sale, that is revenue for Fanatics even if it does not bear the Fanatics Sportsbook name.
