After acquiring PointsBets US assets earlier this month, Fanatics looks set to enter the Michigan online casino space. Though they don’t yet have a license to operate in the region, they are fully expected to branch out from their sports betting roots any time soon.
The interest Fanatics would have in moving into the online casino market in Michigan will be buoyed by the fact that this market far outperforms sports betting in the state in terms of revenue, and even their website outlines their desire to break into the casino by the end of 2023, and where better to get started than the Great Lakes State?
The revenue in this area is on the rise, and all Michigan online casinos enjoy the fruits of this interest; therefore, Fanatics will be making a beeline to join the party. Fanatics’ intentions in this area are clear, as outlined by their statement;
“Fanatics Betting & Gaming is building an online and retail (physical location) sports betting (“Sportsbook”) and online casino (“iGaming”) real-money wagering platform. Fanatics Betting & Gaming launched its first retail Sportsbook in Maryland in January 2023, and in May 2023, launched the beta version of its mobile Sportsbook in Tennessee and Ohio. Fanatics intends to launch and operate its Sportsbook and iGaming platform in additional states in 2023.”
Fanatics has a reputation in the state and is valued at $27 billion. The relative lack of success that PointsBet managed won’t be hard for the company to outperform.
Fanatics outbid DraftKings to acquire PointsBet when they increased their initial offer from $150 million to $225 million, leading to the shareholders at PointsBet agreeing on a deal. The offer from DraftKings would have further solidified their market share, but their offer of $195 million fell short, leaving the way open to the sports memorabilia site to win the race.
On completion of the deal, PointsBet released a statement confirming the acquisition;
“The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty,” PointsBet Chairman Brett Paton said in a release. “Fanatics Betting and Gaming conducted their diligence process and negotiations in a highly professional manner at all times. The additional consideration offered to the ‘front end’ is an element we regarded as a welcome and significant benefit to our shareholders.”
Fanatics has a license to operate in Maryland, Massachusetts, Ohio, and Tennessee but has not yet launched its online sportsbook in the states but plans to do so before the start of the 2023/24 NFL season.
PointsBet’s casino offering in Michigan came via their partnership with the Lac Vieux Desert Band of Lake Superior Chippewa Indians and Northern Waters Casino Resort, and Fanatics will no doubt seek to re-establish that connection and, in doing so, secure the license needed to operate an online casino in the state.
Gaming and sports betting in Michigan is big business, with gross receipts from both markets amounting to $1.98 billion in 2022.
