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PointsBet to engage with DraftKings after $195M U.S. bid

Ryan Cristman, 35, of Ferndale is suing DraftKings, an online sports betting operator,  and seeking class action status claiming they are cheating gamblers out of their winnings. Cristman, who is photographed at home on Friday, June 4, 2021; says that he made a bet in February against the Bruins and after making a screen shot of the winnings, DraftKings informed him that he did not win.

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Credit: Kimberly P. Mitchell via Imagn Content Services, LLC

PointsBet will engage with DraftKings, which on Friday submitted a proposal to buy the Australia company’s U.S. business for $195 million.

“The Directors of PointsBet have considered the DraftKings Proposal; and acting in good faith, have determined that the DraftKings Proposal could reasonably be expected to lead to a Superior Proposal, and, to this end, PointsBet, will now engage with DraftKings on the DraftKings Proposal,” PointsBet said in its release on Monday.

The move comes one month after PointsBet and Fanatics had agreed on a $150 million deal.

Fanatics last week panned the bid by DraftKings.

“We are skeptical of the DraftKings proposal which seems like a desperate move to slow down Fanatics and PointsBet from completing the deal as the purchase price and other financial commitments will total more than $500m – so they are using the majority of their projected year-end cash just to try to block us,” Fanatics CEO Michael Rubin said last week.

DraftKings rejected that assertion.

“We believe the 30 percent premium is a compelling proposal, and want to reiterate that first and foremost we are pursuing this acquisition because it makes sense for DraftKings,” a DraftKings source told SBC Americas on Monday. “It is not a defensive deal.”

PointsBet has market access in 14 U.S. states.

–Field Level Media

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