PointsBet Returns Millions to Shareholders After Sale of US Arm

PointsBet, an Australian sports betting company, has agreed to sell its US business to Fanatics Betting and Gaming for $225 million. The transaction is expected to be completed in multiple stages and is subject to regulatory approvals and customary conditions. If approved, PointsBet will receive $175 million at the initial completion and another $50 million at the subsequent completion.

After selling its US business, PointsBet plans to distribute the net proceeds to its shareholders and most of the company’s corporate cash reserves. The company stated that selling its US assets would change its business, resulting in a surplus of reserves, thus enabling the move. PointsBet plans to return around $203.6 million to shareholders following the initial completion, with a second capital return of between $80.8 million and $92.4 million upon subsequent completion.

Key Takeaways

  • PointsBet has agreed to sell its US business to Fanatics Betting and Gaming for $225 million.
  • The sale will result in a surplus of reserves, allowing PointsBet to return millions to shareholders.
  • Shareholders can expect to receive around $203.6 million initially and between $80.8 million and $92.4 million upon subsequent completion.

The Deal Between Fanatics and PointsBet Was Mutually-Beneficial

PointsBet’s recent divestment of its US assets has allowed the company to focus on other lucrative initiatives, resulting in a turnover of AUD 5.74 billion in FY 2023. As for Fanatics, the acquisition of PointsBet’s US business puts the company in a prime position to challenge established players in the US gambling market, such as FanDuel and DraftKings. The acquisition timing is also advantageous, allowing Fanatics to capitalize on the upcoming NFL season.

Furthermore, the transaction between PointsBet and Fanatics gives the latter company a unique opportunity to enter New York’s gambling market. While regulators must evaluate the company’s suitability to hold PointsBet’s NY license, this move presents a significant opportunity for Fanatics to expand its US footprint. Overall, the deal appears mutually beneficial for both PointsBet and Fanatics.

Leave a Comment