PointsBet has announced that its board unanimously recommends an improved $225 million offer from Fanatics Betting and Gaming (FBG) for its US betting interests. This offer represents a 50% increase from FBG’s prior bid. The deal will involve an initial payment of $175 million upon completion, with an additional $50 million to be paid at a later date. DraftKings, which had previously made a bid of $195 million, failed to meet a deadline to submit a binding offer and stated that it is “no longer pursuing” a deal.

PointsBet shareholders will vote on the deal at an Extraordinary General Meeting on June 30. The proceeds from the sale will be returned to shareholders, with the first tranche expected in September. PointsBet believes that the new offer from Fanatics is superior in terms of pricing and certainty of completion on a timely basis. The company’s chairman, Brett Paton, expressed satisfaction with Fanatics’ professional approach and highlighted the benefit to shareholders of the additional consideration being front-loaded.

Fanatics originally launched a $150 million bid in May, and DraftKings made a non-binding counteroffer in June. However, PointsBet continued to recommend the Fanatics bid to its shareholders. There have been reports suggesting that Fanatics and DraftKings had informal discussions about a potential merger in 2021.