The New York office of Fanatics founder and CEO Michael Rubin.
The Washington Post | Getty Images
Fanatics has increased its stake as it seeks to acquire PointsBet’s US operations.
The sports platform company increased its offer by 50% to $225 million in an attempt to beat bids draft kingEarlier this month, the company made a non-binding offer of $195 million.
PointsBet shareholders will formally vote on the new takeover offer on Thursday night.
“The Board of Directors unanimously supports Fanatics Betting and Gaming’s proposed improvements that offer superior prices and certainty,” PointsBet chairman Brett Paton said in a statement.
PointsBet gave DraftKings until 6pm (Melbourne time) on Tuesday to make a binding offer, which they did not do.
DraftKings CEO Jason Robins previously told CNBC that while the deal won’t be transformative for DraftKings, it will allow the company to expand its market share.
If the deal is formally approved by PointsBet shareholders and regulators, it will provide Fanatics with much-needed US real estate in the 15 US states in which it operates. PointsBet is the seventh largest sportsbook operator in the United States.
“As part of the Fanatics Gaming Group, our US team has a strong future ahead, while PointsBet will build on a strong balance sheet based on opportunities in Australia and Canada,” Payton said.
Fanatics CEO Michael Rubin told CNBC after the DraftKings announcement that he was highly skeptical of their offer, which he saw as an attempt by DraftKings to slow down Fanatics.
“This move delayed our time to market,” Rubin said. “I think they care about us more than I thought.”
Both DraftKings and Fanatics declined to comment for this story.
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