Fanatics is reportedly in talks to acquire the BetParx sportsbook, unidentified sources told CNBC. The sports apparel giant, which has recently entered the sports betting space, currently has a valuation of $31 billion and has been exploring acquisitions of sportsbooks as it moves further into the new vertical.
Fanatics has signed a letter of intent for the sportsbook, but a deal is not certain and the talks may not result in a sale, the sources told CNBC. A deal price couldn’t yet be learned, and representatives for neither Fanatics nor BetParx have commented on the rumors.
The BetParx app was launched last year by Greenwood Gaming & Entertainment, the parent company of Parx Casino in Pennsylvania; and online gambling software supplier Playtech. In addition to its home state, BetParx is also available in New Jersey, Pennsylvania, Maryland, Michigan and Ohio.
Fanatics has considered an initial public offering, but has been looking to complete an acquisition in the gambling space, among other possible deals, ahead of going public, the people told the cited source. The company has been seeking that deal for some time now. Last year, reports indicated it had been in discussions with gambling operator Tipico.
The company would be entering a crowded marketplace that has grown more competitive, in which some smaller players have struggled. In cases like that of MaximBet and Fubo Sportsbook, the difficult space led them to cease operations.
The company opened last week its Fanatics Sportsbook at FedExField, the stadium of the Washington Commanders, making it the first sportsbook in the US within an NFL stadium. Fanatics has also received a temporary license to operate in Massachusetts and plans to partner with Plainridge Park Casino, which is owned by Penn National.
Fanatics raised $700 million in capital late last year, which the company planned to use toward potential mergers and acquisitions across the collectibles, betting and gaming businesses. The fresh round of capital brought Fanatics’ valuation to $31 billion.