Fanatics Gets MGCB Approval for Transfer of Key Staff and Labels from PointsBet

About six months ago, Fanatics completed a historic acquisition of PointsBet after long weeks of intense negotiations. The deal officially cost $225 million and transferred full control of PointsBet casino and sports betting assets in 14 states. Since then, Fanatics Sportsbook has gone live in seven jurisdictions, including Massachusetts, Ohio, Kentucky and West Virginia.

Michigan remains one of the major states where Fanatics is looking to kick start its operations in due course. Thankfully, one of the many states required for a Fanatics launch has now been completed after the Michigan Gaming Control Board (MGCB) approved the transfer of positions from PointsBet to Fanatics.

On Tuesday, December 12, at the monthly meeting of the MGCB, the board approved important staff transfers, one of the major steps involved in the grant of suppliers’ license. Specifically, during Section D of the meeting, the MGCB announced that the following positions, staff and labels be transferred from PointsBet to Fanatics.

PointsBet Michigan LLC, with New Key Person FBG Enterprises Opco, LLC d/b/a Fanatics Betting and Gaming

1. FBG Enterprises Intermediate Holdco, LLC
2. FBG Enterprises Holdco, Inc,
3. FBG Enterprises Topco, Inc.
4. Fanatics Global Holdco, LLC
5. Fanatics Holdings, Inc.
6. Kynetic F, LLC
7. Michael G. Rubin 2011 GST Nonexempt Grantor Retained Annuity Trust #2
8. SL FH Holdco I, L.P.; SL FH VC, L.L.C
9. Michael Gary Rubin
10. Matthew Wallis King
11. Andrea John Ellis
12. Edward Henry Kimball Couture
13. Glenn Howard Schiffman
14. Michael Ross Conn
15. Gregory Keith Mondre
16. Mindy Faye Grossman
17. Gerald Leonard Storch
18. Deven Jawahar Parekh
19. Lydia Bly Jett
20. Jonathan Christopher Mildenhall

Ideally, most new market entrants at this stage only get one or two labels and positions approved during the meetings. However, it would appear that all the important people for management and operations have been addressed by this MGCB meeting. Moreover, at Section F of the meeting, the MGCB listed PointsBet as the only gaming company and approved its transfer to Fanatics.

As it stands, there is now every reason to believe Fanatics are nearing the full launch of its casino and sports betting segments in Michigan.

PointsBet has been one of the leading Michigan online casinos since the state launched its legal iGaming industry. However, in September, a few months after Fanatics took over PointsBet’s operations in the US, its casino and sportsbook in Michigan assumed a new identity.

Soon enough, PointsBet Michigan changed its logo and brand name to include “A Fanatics Experience,” indicating a change of ownership. This has remained the same since then and seems to have yielded some positive results for the brand.

In August, just before the logo and name change, PointsBet casino generated a revenue of $1.3 million, coming off back-to-back revenue declines in the previous month. However, its revenue jumped to $1.8 million in September and $2.1 million in October.

The same applies to its sports betting segment, with PointsBet witnessing a 60% increase in betting handle between August and September. Interestingly, the sportsbook moved from collecting wagers worth $5.5 million in August to $8.8 million and $12.5 million in September and October, respectively. Sports betting revenue has not been on a similar positive trajectory, though, as the operator witnessed one of its lowest revenues in October after a 2.9% hold.

With positive financials backing up the introduction of “A Fanatics Experience,” the expectations from a full launch are quite high. It has now been six months after the deal was completed, and while things look bleak, Fanatics seems committed to launching before the end of 2023.

After the takeover, representatives of Fanatics had revealed that the operator planned to launch its sportsbook by the end of the year and open its online casino in 2024. Despite having just a few days to go in the year, Fanatics hopes it can work within its timeline. Failure to do so would mean it cannot leverage the current NFL season.

Nonetheless, with the approval of staff and role transfers out of the way, only complete regulatory licenses stand between Fanatics and launch. Who knows, Michiganders may well be greeted with a pleasant surprise just before the year runs out.