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Fanatics founder and CEO Michael Rubin in his New York office.
Washington Post | Getty Images
The fanatics raised the stakes as they sought to take over PointsBet’s US business.
The sports platform company increased its bid by 50% to $225 million in an bid bid Kingswhich made a non-binding offer of $195 million earlier this month.
PointsBet shareholders will officially vote on the new offer on Thursday night.
“The Board of Directors unanimously supports Fanatics Betting and Gaming’s improved proposal, which provides superior pricing as well as certainty,” PointsBet Chairman Brett Patton said in a statement.
PointsBet gave the DraftKings until 6pm on Tuesday (Melbourne time) to submit a binding bid and they failed to do so.
DraftKings CEO Jason Robbins previously told CNBC that while the deal wasn’t transformative for DraftKings, it would allow the company to increase market share.
If the deal is officially approved by PointsBet shareholders and regulators, it will give the fanatics much-needed American real estate in the 15 US states in which they operate. PointsBet is the seventh largest sports betting company in the United States.
“Our US team will have a strong future as part of the betting and gaming fanatics group, and PointsBet will build on opportunities in Australia and Canada backed by a strong balance sheet,” said Button.
Fanatics CEO Michael Rubin told CNBC after the DraftKings announcement that he was extremely skeptical of their proposed bid, which he saw as the Draft Kings trying to slow down the DraftKings.
“It’s a move to delay our ability to enter the market,” Rubin said. “I think they are more interested in us than I imagined.”
Both the draft kings and fanatics declined to comment on the news.
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