DraftKings has submitted a US$195m proposal to buy PointsBet’s US arm, a 30 per cent increase on the offer from Fanatics.
PointsBet announced in May that it is looking to sell its US arm, citing fears over profitability. Fanatics, which is looking to expand in the US sports betting market, agreed a $150m acquisition, which would give it access to at least 15 states.
PointsBet said in its announcement that shareholders are set to vote on the move at a meeting in late June.
However, in a letter sent on Thursday to PointsBet’s CEO, Sam Swanell, and non-executive chairman of the board, Brett Paton, DraftKings CEO Jason Robins said the operator is “fully committed to pursuing” its proposed $195m offer for the US assets.
“We are convinced that our indicative offer presents a superior financial outcome for PointsBet shareholders with a clear path to consummation,” Robins added.
In a separate statement published by DraftKings, chief financial officer Jason Park said the company expects the transaction to increase its adjusted EBITDA potential in 2025 and beyond, and “not impact our expectations of achieving positive adjusted EBITDA in 2024.”
“We are excited about the potential synergies available by acquiring PointsBet’s US business, including offering our customers interesting new bet types and accelerating our roadmap of bringing in-house more of our mobile sports betting technology,” Park added.
A PointsBet statement on DraftKings' competing proposal said: "The directors of PointsBet are committed to acting in the best interest of all shareholders and are considering the DraftKings Proposal alongside its advisers.
"In assessing the DraftKings proposal, the board will determine whether the DraftKings proposal could reasonably be expected to lead to a superior proposal for the US Business."
