By Nando Di Fino, Andrew DeWitt and Daniel Kaplan

Fanatics has agreed to acquire PointsBet’s U.S. assets for $150 million, PointsBet announced in a news release Sunday. Here’s what you need to know:

• Fanatics, the world’s largest sports apparel and collectibles company, entered the sports betting landscape in 2023. It launched its first retail sportsbook in Maryland in January and in March launched a beta version of its mobile sportsbook in Tennessee and Ohio.
• The deal with PointsBet is expected to allow Fanatics to gain access to at least 15 states, including New York, New Jersey, Illinois, Michigan and Pennsylvania.
• PointsBet is the seventh-largest online operator for sports betting, according to the news release. PointsBet will retain its Canada and Australia business operations.
• Fanatics is valued at $31 billion, according to CNBC.

Why PointsBet agreed to this deal

PointsBet had one of the smallest market shares around. The company tried to differentiate itself by having a unique product, but didn’t have the marketing dollars to keep up with the FanDuels, BetMGMs and DraftKings of the world.

PointsBet was also known for its poor customer service and the practice of immediately limiting any winners on its sportsbook.

Not sure many sharp bettors will be sad to see PointsBet go, but it is an interesting move from Fanatics to immediately get market access. — DeWitt

What this acquisition means for Fanatics

Fanatics gets more market share by cheaply acquiring a company that was likely leaving the United States market, and now it should be able to set up shop quickly in those states. It won’t make Fanatics a top-three sportsbook overnight, but it is a small acquisition that will help the company get there.

Fanatics has more data on sports fans than any other company, so it has the ability to market quickly to customers it wants to. — DeWitt

Does this make Fanatics an instant player?

My initial take is this is really smart and seems like a really great price. Fanatics has bought Mitchell and Ness and Topps, and now basically fast-forwarded its sportsbook. Michael Rubin’s company keeps making smart strategic purchases that overlap interests. You can bet on a player prop, buy his card and then get his replica throwback jersey all in one place. Fanatics has essentially built a virtual dream shopping mall for adult sports fans.

Fanatics has an instant advantage over other books in that the audience it can bring in could just be a regular consumer looking to buy a shirt whose interest gets piqued by a prop or offer related to that team or player. Fanatics’ customer acquisitions should be easier than other books that don’t have a mega apparel company that’s been around for decades already catering to fans.

Fanatics has been hiring for sportsbook operations for months, so it should have a base and a group ready to dig in and flip a switch relatively soon. But the company got shut out of New York licensing — even with Jay-Z attached — and this likely solves that problem. — Di Fino

Required reading

(Photo: Robert Edwards / USA Today)