PointsBet said its shareholders are expected to receive between 71 and 73 cents per share for the acquisition. PointsBet shares traded as high as $12.69 per share in February 2021 – 17 times higher than what they were sold for.
Shareholders receive less than they would have on PointsBet’s lowest trading day in its history – 97 cents per share on March 15, 2020, when the world was about to shut down due to the pandemic.
Having the appearance of PointsBet enables them to launch into the largest market where no licenses are available. It’s one of the biggest acquisitions for the fanatics in this deal, despite New York’s less friendly tax policies against sportsbooks.
New York gets 51% of all sportsbook earnings in the state. Compare that to 10% in New Jersey or Colorado. This resulted in a decline in promotional activity in the state despite it being number one in industry and wealth.
While there are a lot of professional sports bettors out there, for example, there are far fewer professional baccarat or slot machine players.
Despite the fanatics – which was finally said to be worth $31 billion – and the betting division in stealth mode, the division now has nearly 200 employees and has completed a deal with a software company to manage the linemaking and player account management.
Sources said the book even contains a promotional system. Users will get 1% return for every dollar wagered on consecutive bets, 3% on straight bets and 5% on same bets. “Fan Cash” can then be used to purchase gear from Fanatics.
The system is similar to the one used in DraftKings and Caesars – although in those books, you can exchange credits for live cash.
PointsBet has been very successful in the United States, entering important markets relatively quickly. But Pointsbetting did not catch on because of its high stakes and the book was repeatedly criticized for its low limits and railroad track of successful gamblers.
“Despite the strategic success in building a valuable asset in the US, operating costs in a country-by-country environment, combined with the requirements to build a significant scale to compete against well-capitalized operators, led us to explore a number of options,” said the member. PointsBet Managing Director and Group CEO Sam Swanell, in a statement.
PointsBet signed a deal with NBC that guarantees it will spend $90 million annually on the network.
The deal, which gave NBC a stake in the company, was recently renegotiated to $58 million a year in ad buys. She also signed Drew Brees, who was an NBC analyst, for further synergy, but Brees was let go after only a year.
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