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Fanatics Could Launch iGaming Platform in Michigan Next Year
Fanatics recently acquired PointsBet’s US assets; more is needed to fulfil the company’s expansion strategy. The gaming company is now ready to enter Michigan’s online casino market.
While Fanatics doesn’t currently operate in the online casino market within the state, it’s preparing to expand its presence in a new direction. However, a promotion released by PointsBet for all online casino Michigan players has shown that the company will not immediately rebrand.
The promotion released by PointsBet expires in January. This points to the suspicion that PointsBet will remain the prime brand in the state until early 2024. The promotion expires in January next year.
With Michigan’s surge in online casino revenue, Fanatics can reap substantial profits once it joins the market. Fanatics Betting & Gaming has always intended to promote its comprehensive real-money wagering platform.
This platform was introduced as a solution to offer online and retail sports betting and online casino gaming dynamics. The company launched the platform throughout various states in 2023.
The gaming provider already operates in Ohio, Maryland, Massachusetts, and Tennessee. The company intends to expand to 12 states where the PointsBet brand is active. However, Fanatics is still awaiting approval from the Michigan Gaming Control Board for its license in Michigan.
The acquisition of PointsBet by Fanatics was not easy for the company. The brand went on a bidding war against DraftKings. While Fanatics had initially proposed $150 million, the company was forced to push the amount to $225 million after DraftKings returned with a $195 million offer.
Now that the company has confirmed the acquisition, Fanatics is in the midst of what appears to be a significant opportunity to grow its betting and gaming division.
PointsBet’s non-executive chairman of the board, Brett Paton, expressed support for the acquisition and highlighted its advantages. Paton added that PointsBet has a strong balance sheet and potential expansion opportunities.
Fanatics claims that PointsBet brings sufficient financial strength for the merger to pursue an expansion strategy to international markets such as Australia and Canada. Shareholder and regulatory approvals are pending, yet that is where the company intends to move.
PointsBet initially launched in Michigan in January 2021. The company collaborated with the Lac Vieux Desert Band of Lake Superior Chippewa Indians and the Northern Waters Casino. Fanatics now faces the task of reestablishing this partnership while securing the necessary online casino license to enter the state of Michigan.
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