Fanatics in negotiations to purchase sports betting company Tipico
The sale price is seemingly holding up Fanatics’ acquisition of the small US sports gambling business.
The sports merchandising company Fanatics has completed several acquisitions in recent years. In 2020, it acquired sports merchandise manufacturer WinCraft, and earlier this year it bought trading card company Topps for $500m.
The company now has its eyes set on Tipico, a small US sports gambling and betting business. Tipico has licenses in New Jersey and Colorado, but primarily is a sports betting provider in Germany. According to CNBC sources, a deal hasn’t been reached by the parties involved due to pricing.
Executive Chairman of Fanatics, Michael Rubin, announced on Wednesday that he’d be selling his 10% share in Harris Blitzer Sports Entertainment, which owns the Philadelphia 76ers and New Jersey Devils. This move cleared up the route for Fanatics to enter the sports betting market, as the NBA prohibits team owners from operating a gambling platform.
In a statement on Twitter, Rubin said: “As our Fanatics business has grown, so too have the obstacles I have to navigate to ensure our new businesses don’t conflict with my responsibilities as part-owner of the Sixers.”
He continued: “With the launch of our trading cards and collectibles business earlier this year — which will have individual contracts with thousands of athletes globally — and a soon-to-launch sports betting operation, these new businesses will directly conflict with the ownership rules of sports leagues. Given these realities, I will sadly be selling my stake in the Sixers and shifting from part-owner back to life-long fan.”
Tipico has branches in Germany, Austria, Croatia, Gibraltar, Colombia, and the US. The company also focuses on the early identification of risky gaming behavior based on scientific models.
In closing, Rubin said: “We can be the No. 1 player in the world in that business in 10 years. That does seem ambitious for someone who’s not in the business today, but our strategic advantages are that we are one of the best-known digital sports brands and we touch so many fans.”
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