SCCG Founder: Bargain basement price for PointsBet US gives Fanatics foundation
In exclusive comments to Gambling Insider, Stephen Crystal discusses Fanatics’ deal to buy PointsBet’s US operations.
SCCG CEO and Founder Stephen Crystal has commented on the news that Fanatics will purchase PointsBet’s US operations for $150m.
In an exclusive statement to Gaming Insider, Crystal said he thought “BetFanatics was a bit slow getting out of the gate.”
Crystal continued: “Given the bargain basement price for PointsBet US, it gives BetFanatics a foundation in many more states from which to launch their brand from. It also gives them some unique technology and features to incorporate.
The news that PointsBet was considering a strategic review of its US operations came at the same time the company announced its Q1 results for 2023 – revealing that it had hired investment bank Moelis & Company to handle the sale.
PointsBet remains the seventh-biggest sportsbook operator in the US market, recording $120m in revenue for H2 2022; however, as part of the statement that made its strategic review public, PointsBet stated that it “believed further industry consolidation is inevitable.”
Crystal commented to Gambling Insider at the time of the strategic review, saying: “PointsBet entered the US market at a time when there were more operators interested in playing than there were ‘skins’ or market access opportunities. As a result, it may have overpaid for opportunities.”
The deal that will see Fanatics buy PointsBet’s US operations has been mooted for a long time, with Fanatics reportedly in discussions to buy the business over a year ago. Crystal added that he feels the deal is a beneficial one for both businesses.
He concluded: “Overall, it makes sense for both parties. As it is, PointsBet was on track to lose $80m US in the second half of the year.”
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