The gambling industry is buzzing with excitement over the news of an unexpected from DraftKings to outmaneuver Fanatics in the effort to acquire the US assets of PointsBet. With DraftKings offering $195 million, surpassing Fanatics’ bid of $150 million, industry insiders are questioning the motivations behind this aggressive move.
Opinions vary regarding DraftKings’ intentions. Some interpret it as a shrewd business strategy, while others see it as a defensive maneuver.
In truth, both perspectives are right.
Just for fun though, it may be worth considering that DraftKings is simply being petty. At least when it comes to the NJ online gambling industry.
Is part of DraftKings’ strategy to box out Fanatics?
PointsBet has both NJ online casino and online sports betting. Similarly, DraftKings New Jersey operates in both verticals.
And Fanatics, whenever and however it eventually gets here, will also operate both.
But, DK scooping up PointsBet would only delay Fanatic’s entry into New Jersey. Now, it may very well complicate matters in other states. Just not here.
For digital gamblers in New Jersey, the curious bidding war will ultimately result in minimal changes.
There is no drama in this as far as NJ is concerned.
Nevertheless, the market’s lack of visible transformation does not quell the excitement surrounding DraftKings’ ambitious bid. Pundits revel in speculation, pondering how this acquisition could make waves, even if these waves are largely insider baseball.
How DraftKings acquiring PointsBet affects NJ online gambling
If DraftKings does acquire PointsBet, the New Jersey online gambling market might change in subtle ways.
Firstly, increased market consolidation would occur as DraftKings broadens its scope and establishes a more dominant position. This could spur heightened competition among existing operators, resulting in new strategies, promotions and innovations aimed at capturing a larger share of the market.
Integrating PointsBet’s products and features into DraftKings’ platform could offer NJ players a more diverse range of betting options and experiences. Enhanced technological capabilities, arising from the exchange of expertise between the two companies, might lead to improved mobile apps, user interfaces and innovative betting features. These advancements could revolutionize the user experience, enticing more gamblers to participate and driving market activity.
It’s important to consider the crucial role of gambling regulators in industry acquisitions. DraftKings would need to secure the necessary approvals to continue seamlessly operating in New Jersey. The regulatory process and its outcomes could shape the market’s response to the acquisition.
The PointsBet board will still meet on June 30. According to a leaked internal memo, the board is recommending approval of Fanatics’ initial offer. As of Wednesday, DraftKings had not submitted a binding offer to PointsBet’s board, according o multiple reports.