The operator has submitted a request to manage continuous disclosure obligations for a “material transaction.” If approved, a trading halt will be in place until normal trading resumes or an announcement is made. This request comes ahead of a scheduled shareholder vote on the proposal to acquire PointsBet’s US business by Fanatics, which will take place on June 30th.
DraftKings has also submitted a rival proposal to acquire PointsBet US, worth $195.0m. Fanatics CEO, Michael Rubin, has criticized this proposal as an attempt to hinder progress on their deal. If Fanatics completes the acquisition, it will gain access to major betting and igaming hubs. PointsBet has stated that they will engage with DraftKings regarding their proposal, but continue to recommend shareholders vote in favor of the agreed sale to Fanatics. Their decision will be finalized at an extraordinary general meeting on June 30th.
PointsBet has addressed allegations that DraftKings acted in bad faith, stating that they believe they acted in “good faith.” In a letter to DraftKings’ CEO, PointsBet’s non-executive chairman listed expectations for the proposal, including due diligence, written confirmation of funding for the US cash burn, and adherence to anti-trust clearances.
PointsBet had previously confirmed talks with multiple parties regarding the sale of its North American arm. Despite a strong first quarter in terms of revenue growth, the company expects an EBITDA loss and has been actively cutting costs to drive profitability.
