Fanatics Acquires PointsBet US

[gauchojake]

For 150 Million???????? Seems pretty cheap.

https://www.cnbc.com/2023/05/14/fanatics-to-buy-pointsbet-us-assets.html

[Brock Landers]

What did pointsbet do to be so bad as to lose that much?

I don't think I've ever heard of a book that unprofitable

[Optional]

I think they tried to be a bit too clever for themselves by launching on the gimic that they were a Spread Betting book and never fully gave up on that plan even as they moved to being a "normal" sportsbook.

Plus they never wanted to compete on price at all I think. But the quality of service just wasn't good enough to support that idea.



I'd say a big percentage of online bookmaking attempts turn out unprofitable or no better than break even Brock. Especially the ones without properly experienced real world bookmakers running them.

[milwaukee mike]

What did pointsbet do to be so bad as to lose that much?

I don't think I've ever heard of a book that unprofitable

draftkings lost over a billion dollars, each of the last 3 years... over 4 billion in losses during those 3 years... and they will lose another billion or so in 2023

[SBR Andy]

SBR's Dave Bonderoff shares his take on the acquisition: https://www.sportsbookreview.com/new...n-may-15-2023/

[mattyicey]

I have a Pointsbet 2k free bet VIP refer, I hope it stays active with the new purchase

[KDeen10]

draftkings lost over a billion dollars, each of the last 3 years... over 4 billion in losses during those 3 years... and they will lose another billion or so in 2023

How's DK losing so much money?

[Optional]

SBR's Dave Bonderoff shares his take on the acquisition: https://www.sportsbookreview.com/new...n-may-15-2023/

"PointsBet shareholders are expected to receive between 71 cents and 73 cents per share, far below the peak of $12.69 the company was trading at in February 2021."

Ouch

How's DK losing so much money?

Market building instead of concern about profits. The investment should be worth more than the spend in terms of company value and market power I guess.

[milwaukee mike]

How's DK losing so much money?

good question

they've been spending tons on marketing to build the brand, almost a billion in advertising last year... they have a high cost structure, but revenue going way up should fix that shortly

dkng revenue in 2018 was 200 million... in 2022 it was 10x that, 2.2 billion... 2023 will be over 3 billion

[Optional]

If you are in Tennessee or Ohio it's possible to contact Fanatics and ask to join their App Beta Test.

Make a $5 deposit/bet and they give you $150 in bets to help them test out the platform.

A couple of people have confirmed they asked and were sent an invite immediately.

[KDeen10]

If you are in Tennessee or Ohio it's possible to contact Fanatics and ask to join their App Beta Test.

Make a $5 deposit/bet and they give you $150 in bets to help them test out the platform.

A couple of people have confirmed they asked and were sent an invite immediately.

What if they limited your bets to $1 would they still consider you?

[Optional]

What if they limited your bets to $1 would they still consider you?

Fanatics are not open yet. It's their app beta test.

If you mean Pointsbet, i dont know.

[5mike5]

NBA, MLB, NHL, and PGA only sports listed for Beta testers so far. Hopefully won't take long to add some shit