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DraftKings has stressed that its proposal to acquire the US business of PointsBet represents “a significant premium to Fanatics’ offer” as the M&A race heats up.

This follows a $150m deal being agreed last month, after it was deemed that Fanatics’ overtures were the most appealing from a shareholder perspective following conversations with “all leading US-based sportsbooks regarding potential strategic relationships”.

Concluded in May, the deal would see Fanatics acquire PointsBet US, its market access, Banach Tech, and a licence for its proprietary technology. The Canadian business would remain with the group

However, DraftKings has subsequently entered the fray with an indicative offer to acquire PointsBet US in an all-cash transaction with $195m, which, it is said, represents a 30 per cent premium to that outlined above.

In a letter to Brett Patton, Non-Executive Chair, and Sam Swanell, Managing Director and CEO, DraftKings emphasised that it is “prepared to move forward quickly and efficiently”.

“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalise on compelling opportunities at attractive valuations, as is the case with PointsBet’s US business,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder.

“We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.”

Regarding the proposal, DraftKings voiced little concern that required regulatory approvals wouldn’t be gained in a timely manner, with the offer having “the full support of the highest levels of our organisation”.

Elaborating on the rationale behind the approach, DraftKings has elaborated on the “substantial synergies” that it expects to be felt by capturing PointsBet US.

The gaming and betting operator expects enhanced product and additional in-house capabilities, as well as further benefits via improved customer acquisition and monetisation, marketing efficiencies, and fixed cost rationalisation.

“We expect this transaction to increase our adjusted EBITDA potential in 2025 and beyond and not impact our expectations of achieving positive adjusted EBITDA in 2024,” said Jason Park, DraftKings’ Chief Financial Officer. 

“We are excited about the potential synergies available by acquiring PointsBet’s US business, including offering our customers interesting new bet types and accelerating our roadmap of bringing in-house more of our mobile sports betting technology.”

Responding to the proposal, the board of PointsBet has noted that an internal assessment will take place to determine if this latest proposal surpasses that of Fanatics.

This will include factors such as shareholder value, whether the DraftKings proposal can be finalised in a timely manner and if the terms are more favourable to those already received.

However, it was warned that: “It should be noted that the DraftKings proposal does not constitute a binding offer or commitment on the part of DraftKings to negotiate or execute a definitive agreement and, to this end, there is no guarantee that the DraftKings proposal will result in a binding definitive agreement.”