Fanatics Sportsbook Takes First Regulatory Step for Pennsylvania Launch

• Fanatics Sportsbook received its first regulatory approval from the Pennsylvania Gaming Control Board
• The board unanimously approved petition to transfer PointsBet’s Pennsylvania assets to FBG Enterprises, owner of Fanatics Sportsbook
• The sportsbook still needs to complete several other regulatory processes in the state before launching

The first step to transfer PointsBet’s Pennsylvania online sports betting brand to Fanatics Sportsbook was completed earlier this week, as the Pennsylvania Gaming Control Board unanimously approved the ownership change between the two sports betting operators.

The PGCB unanimously approved a petition seeking approve of a transfer of interest between PointsBet Pennsylvania LLC and FBG Enterprises, the parent company of Fanatics Sportsbook. The gaming control board approved the petition without any discussion.

It’s the first regulatory step for Fanatics Sportsbook to launch in the commonwealth, though a timeline to launch was not provided.

Fanatics Sportsbook Waiting for First PointsBet Assets

According to Doug Harbach, communications director for the PGCB, Fanatics Sportsbook still needs interim authorization from the executive director. After receiving authorization, the sportsbook operator would need to sign a “Statement of Conditions and Indemnification” agreement before it can launch in the state.

A Fanatics Betting and Gaming representative did not provide comment on a timeline for the sportsbook to be live in Pennsylvania.

Pennsylvania will likely be a state Fanatics Sportsbook focuses on first for a launch, as the commonwealth is a top-five sports betting market in the country. According to the details of the Fanatics/PointsBet deal, Fanatics will begin acquiring PointsBet assets for three states this month.

It’s unknown what state assets will first be turned over to Fanatics, but Pennsylvania could be among the first the company focuses on for a transfer. PointsBet will hand over access to three more states on a rolling basis until all U.S. entities are acquired by Fanatics Betting and Gaming by May 2024 at the latest.

PointsBet has U.S. market access in 14 states, including New York, New Jersey, Michigan, and Pennsylvania. Fanatics Sportsbook is currently operational in Maryland, Ohio, and Tennessee.

New Jersey, New York Also on the Horizon?

Fanatics has expressed its desire to be live in as many markets as possible before the year is out. Two neighboring states of Pennsylvania, New Jersey and New York, may be on the Fanatics short-list of states it wants to gain control of first.

At a May meeting of the New York State Gaming Commission, Chairman Brian O’Dwyer revealed that there will be no simple transfer of PointsBet’s New York online sports betting license to Fanatics. Fanatics will have to become the new outright owner of the license, which O’Dwyer said requires complete staff review and commission approval before becoming final.

O’Dwyer revealed at the commission’s August meeting that it will evaluate Fanatics for suitability before making a recommendation on the transfer of the PointsBet license. A final recommendation on the license will likely be made during the commission’s September meeting.

New Jersey is likely one of the state’s Fanatics will look to launch in as soon as possible as well. A New Jersey Division of Gaming Enforcement representative told Sports Betting Dime that both PointsBet and Fanatics are current applicants for Casino Service Industry Enterprise (CSIE) licenses in New Jersey, but have not yet completed the process.

Both are eligible, however, to operate pursuant to a transactional waiver, which permits unlicensed CSIEs to conduct gaming related business in the state.

“PointsBet is currently operating under a transactional waiver, and because of that, there is no license that needs to be transferred. Once Fanatics completes its acquisition of PointsBet, it will need to obtain a new transactional waiver from the Division of Gaming Enforcement to continue operations,” the representative said.

With the NFL season set to begin in less than two weeks, it’s highly unlikely that Fanatics Sportsbook is ready to launch in either New Jersey, New York, or Pennsylvania by the start of the season.