New York regulators could approve the acquisition of PointsBet’s U.S. assets by Fanatics by the start of September. On Thursday, the New York State Gaming Commission had a meeting in which it discussed the sports betting agreement, which has already been accepted by shareholders of PointsBet. The regulator noted that increased scrutiny is needed in this situation.
The deal for the acquisition of PointsBet’s U.S. department was announced in May 2023 and it will cost Fanatics approximately US$150 million to complete it. Then in June 2023, the former’s shareholders voted on the sale and approved it. But the transaction raised questions about the operator who is part of leading iGaming markets, including NY in the U.S. and Ontario in Canada.
*Transfer of Licenses is Not Required
During the meeting, NYSGC Chair Brian O’Dwyer noted that the acquisition does not need a transfer license, as Fanatics purchases a PointsBet-related entity that originally holds the permit. However, the gambling regulators remarked that there is a need for increased scrutiny of the situation due to the control of the licenses being effectively transferred.
Mr. O’Dwyer commented that the staff has and will mandate that the buyer will go through a thorough examination of character and fitness to operate the license in NY. Once the review is done, the regulator will assess the findings and recommendations of its staff and make a final decision, which will most likely happen during the commission’s September meeting.
The regulator’s evaluation is of tremendous importance to Fanatics, as the Empire State’s mobile market for online sports betting is one of the largest legal ones in the U.S. Getting access to the local sector is most likely one of the reasons why the company spends big money on the acquisition. The company also applied for a license in the state but did not make the final cut.
In a recent presentation, PointsBet shared that teams from the two companies have been working well on the transition of the operator’s U.S. division into the Fanatics portfolio. The company also said that both corporations are eager about the combination of the Fanatics brand, database and team with one of PointsBet’s technology, market access and team.
*Continuing Operations in Canada
Up north, the company operates in Ontario’s regulated market which offers online gambling and sports betting, where the company provides its product via PointsBet Canada. Shortly after the launch of the market, the operator shared that its activity has exceeded expectations. Early data found that local bettors were quite keen on the company’s sportsbook vertical.
However, according to Managing Director and Group CEO, Sam Swanell, the corporation’s acquisition by Fanatics will not affect its work in Ontario. He said the company’s level of cash investment required in the US to reach profitability was quite different from the one in Canada. He projects that the operator is on a path to profitability within 18 to 24 months, without additional funding.
*AMELCO IS THE LATEST IGAMING SUPPLIER TO JOIN ONTARIO
Ontario’s open and competitive sector for online gambling and sports betting grows even larger, as Amelco announces its official entry. The leading supplier announced that it has earned a Gambling Related Supplier license from the Alcohol and Gaming Commission of Ontario. Now, the company is eligible to offer its end-to-end solution for operators in the province.
The province’s market is the first of its nature across Canada, and it kicked off operations on April 4, 2022. Overseen by AGCO and iGaming Ontario, the local sector saw a total of CA$14 billion in placed wagers in the first quarter of 2023-2024. At the end of the quarter, there were 46 operators online, running 71 gaming websites.
*Preparing for Official Debut
After acquiring the obligator certification from the province’s gaming regulators, Amelco is now eligible to offer its innovative solutions, iGaming portfolio, player account management and sportsbook suite to partner operators in the province. At the time, the online gambling supplier has not confirmed any operator with which it will partner in the jurisdiction.
Outside of Ontario, the leading provider has already teamed up with and acquired content from Evolution, NetEnt, Red Tiger, Pragmatic Play, and many more. It is expected that in the upcoming weeks, the aggregator of games will reveal its first collaborators in the sector. Its expertise in the industry and its already-established relationships put it in a solid position in the province.
The debut in Ontario was commented on by the company’s Head of USA, Brandon Walker. He said that the launch in Canada’s most populous province was a pivotal achievement in the supplier’s history. Mr. Walker said the team was pleased to finally gain entry to the province and is now looking forward to delivering its sportsbook and iGaming product to the local players.
Furthermore, he also discussed the company’s plans for North America as a whole. Mr. Walker said that the firm will focus on both iGaming and sports wagering, and is hopeful that it will be able to conduct its strategy in both. He also hinted that the provider has some big plans in store for Ontario, but those are subject to official announcements and will be disclosed in the next 12 months.
*Market has Been Profitable
It is safe to say that Ontario’s initiative to open up its iGaming sector for third-party operators has been a success. According to provincial numbers, in the first year of regulated digital gaming raked in just over CA$1.48 billion to the province’s gross domestic product with CA$906 million going into labour income. These numbers put the province in the top five jurisdictions for online gaming in North America.
However, the increase in popularity has brought tons of marketing from gambling operators, which upset parents, due to the potential negative impact on children who watch sports games. That is why AGCO proposed banning the use of pro athletes and celebrities from featuring in gambling endorsements. But the new rule is yet to be implemented by the iGaming watchdog.
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