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DraftKings vs. Fanatics Rivalry Exposed With PointsBet Bids

Dave Bonderoff

Last Updated: June 27, 2023 4:27 PM EDT • 3 min 4 sec read.

Guests at the Fanatics Super Bowl Party on Feb. 3, 2018 in Minneapolis, Minnesota, as we look at the PointsBet Q1 handle during its transition out of the American market
Guests at the Fanatics Super Bowl Party on Feb. 3, 2018 in Minneapolis, Minnesota. Photo by Daniel Boczarski/Getty Images for Fanatics via AFP.

The bitter battle for market share in the U.S. legal sports betting industry is ongoing but there hasn't been much made about rivalries among the best sports betting apps. Until now.

The last two weeks have shone a light on the competition between two sportsbooks in the exploding U.S. market. Australian-based PointsBet, and their desire to exit the U.S. market and eagerness to sell all of their American assets, has brought to the surface a simmering rivalry between DraftKings and Fanatics. The two books that have apparently held merger talks in the past but have since turned into competing suitors for the PointsBet brand.

June 30 is the date set for PointsBet‘s general meeting in Sydney, Australia, where two different proposals for PointsBet's USA assets will be considered. Fanatics was the first to put a bid in for the sports betting brand, only to be trumped by DraftKings just a few days later.

What is at stake?

Australian-based PointsBet is in the process of selling off their U.S. assets and has been taking bids on their popular sports betting brand. Established in 2017, PointsBet has risen up to become an established, recognizable, and innovative sports betting brand in Australia, the U.S., and Canada.

PointsBet boasts sportsbooks in 14 U.S. states presently including Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia, and West Virginia. Any takeover of PointsBet would be accompanied by not only the licenses in those states but also the database of current users in those jurisdictions.

Perhaps their most important license is in New York, a state that has limited their legal sports betting industry to nine of the best sportsbooks, and one that has become by far the most popular markets in the country. $1 billion handles are almost a guarantee for the New York sports betting scene every month, and PointsBet, although not the biggest player there, has managed to gain a respectable market share.

PointsBet is also home to a revolutionary and proprietary "PointsBetting" feature that gives its users a chance to increase their earnings based on the accuracy of their betting picks. PointsBet promo codes are another great feature from the sportsbook.

The competing proposals

Fanatics has been fairly aggressive lately in trying to expand their presence in the U.S. market, so it comes as no surprise that they are in on the PointsBet bidding. Fanatics is one of the global leaders in licensed sports merchandise and has been pursuing a sports betting platform in order to seize on their incredible reach. It is well-funded and is in a good position to take over the PointsBet U.S. assets.

Fanatics was the first provider to put their bid in for PointsBet U.S.A. $150 million is the dollar figure put on that bid.

DraftKings has also shown some interest in PointsBet U.S.A. and followed Fanatics' bid up with a $195 million proposal. DraftKings, one of the two legal online sports betting behemoths in the U.S. market, would further cement their elite status in the market if they were indeed successful in acquiring the PointsBet brand. By offering large DraftKings promos, DraftKings has gained considerable market share, and this would give it another boost.

From alliances to rivals

DraftKings and Fanatics are competing entities in the PointsBet acquisition. But at one time, there was a chance that the two companies would merge to form one gigantic legal sports betting company. It has been reported that back in 2021, executives from both books discussed a merger that would give each company a 50-50 stake in the newly formed company. It would have been a $48 billion merger.

The talks at that time were held secretly but eventually broke off after Fanatics CEO Michael Rubin walked away from the talks. It is rumored that DraftKings CEO Jason Robins has not gotten over the breakdown of those talks.

According to the New York Post, the DraftKings bid for PointsBet was made in reaction to Fanatics blowing up the 2021 merger. According to the report, Robins “was stopped and now he is returning the favor.”

Now we wait

June 30 is a big day for not only PointsBet, but also DraftKings, Fanatics, and the entirety of the American sports betting sites. The PointsBet board has already agreed to a sale to Fanatics, but shareholders could turn that deal upside down. The PointsBet board, for what it is worth, is recommending the Fanatics sale, but it is ultimately up to shareholders to have their say.

Obviously, DraftKings came up with the superior bid – the $195 million is 30% higher than the one put forward by Fanatics.

There is a lot in the line with the merger talks with Fanatics having a whole lot more to gain than DraftKings. It leaves us in a “wait and see” posture as the landscape of the U.S. legal sports betting scene is about to be transformed.

Written By:
Dave Bonderoff
Dave Bonderoff and betting go hand-in-hand. Both are characterized by "odds". Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn't found a sport yet that can't contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.