Sports Merchandise company Fanatics is reported to be in advanced negotiations with both Rush Street Interactive (RSI) and Betsson to purchase one of their sports betting operations.
The company first indicated its desire to enter the sports betting market earlier in August as it made preparations to apply for one of the soon-to-be available mobile sports betting licenses in New York State. At the same time it was also revealed that rapper and entrepreneur Jay-Z had invested in the company as a result of its sports betting aspirations.
Neither RSI nor Betsson have yet made any comment on the potential takeover bids, but industry analysts believe that a takeover of RSI’s sports betting operations would be Fanatics’ preferred option as the operator currently has sportsbooks available in ten states across the US. Betsson, on the other hand, has yet to enter the US market.
However, any takeover of RSI’s sports betting operations may be complicated by the fact the operator is reported to be considering the availability of ESPN’s brand name for $3 billion. The Disney-owned sports network is prepared to license its brand name to a sports betting operator for a period of several years and RSI has reportedly joined DraftKings and Caesars as registering its interest.
No figures have been reported for either potential takeover bids.