Fanatics raised the bid for PointsBet’s US assets to $225 million
Michael Rubin, Founder and CEO of Fanatics, in his office in New York.
Washington Post | Getty Images
Fanatics have raised the stakes as they seek to buy PointsBet’s US operations.
The sports platform company increased the offering by 50% to $225 million DraftKingsmade a non-binding offer of $195 million earlier this month.
PointsBet shareholders will formally vote on the new proposal on Thursday evening.
“The Board of Directors unanimously supports Fanatic Betting and Gaming’s expanded offering of superior value and reliability,” PointsBet President Brett Paton said in a statement.
PointsBet gave DraftKings until 6pm (Melbourne time) on Tuesday to make a binding offer, but they failed to do so.
DraftKings CEO Jason Robins previously told CNBC that while the deal won’t be transformational for DraftKings, it will allow the company to increase its market share.
If the deal is formally approved by PointsBet shareholders and regulators, it will give Fanatics much-needed real estate in the 15 US states where they operate. PointsBet is the seventh largest sports betting operator in the United States.
“Our US team will have a strong future at Fanatic Betting and Gaming, and PointsBet will build on the opportunities provided by our strong balance sheet in Australia and Canada,” said Paton.
Fanatics CEO Michael Rubin told CNBC that he was very skeptical of their proposed bid following DraftKings’ announcement that he saw DraftKings trying to slow down Fanatics.
“This is a decision to delay our market entry,” Rubin said. “I think they’re more concerned than we think.”
Both DraftKings and Fanatics declined to comment on the news.
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