Jay-Z backed Fanatics edges closer to $200 million PointsBet deal

The US division of ASX-listed PointsBet is close to finalising a deal to be acquired by Jay-Z backed wagering giant Fanatics, after months of negotiations with multiple parties.

Fanatics Sportsbet is on track to acquire PointsBet’s US division in a sale exceeding $200 million, this masthead has learned. This figure does not account for funding projected losses or other liabilities.

Fanatics Sportsbet would acquire PointsBet’s US outfit and its lucrative technology under the terms of the deal, which could be completed as soon as Monday. PointsBet is operational in 14-states including New York, Michigan and Pennsylvania. PointsBet will retain ownership of its Australian business, which traded at $1.84 a share at last close.

US wagering website Sports Handle reported a deal was close to being completed on Friday. PointsBet declined to comment as the negotiations have not been finalised.

If the deal goes ahead, Fanatics will take over PointsBet’s capital requirements and its two-year advertising deal with NBC, worth $500 million in 2020.

One source who was not authorised to speak publicly said the surplus cash from the sale is expected to be distributed to shareholders upon completion.

PointsBet has been at the centre of local industry consolidation rumours for the past year, and rejected two takeover attempts from News-Corp’s joint-venture Betr and preliminary interest from other local operators including Entain and Tabcorp.

PointsBet entered into exclusive talks with Betr at the end of last year but the Matt Tripp-led group was unable to secure the $250 million PointsBet was seeking for the deal. PointsBet publicly confirmed it was no longer entertaining talks with Betr in a market update last month.

PointsBet is expected to face additional local acquisition attempts from local wagerers after the sale of its US division is completed.