Michael Rubin arrives at the 2019 Fanatics Super Bowl Party on Saturday, February 2, 2019, in Atlanta.
Paul R. Giunta | Invision | AP
Fanatics, the sportsbook business, is in talks to buy sports betting company Tipico, according to two people familiar with the matter.
An agreement has yet to be reached and the two sides are currently deadlocked over price, although negotiations are ongoing, the people who requested anonymity said because the discussions are private.
Tipico has a small sports gambling business in the United States, licenses in New Jersey and Colorado, but is the leading sports betting provider in Germany, according to its website.
Fanatics Executive Chairman Michael Rubin announced on Wednesday he is selling his 10% stake in Harris Blitzer Sports Entertainment, which owns Philadelphia 76ers and New Jersey Devil, clearing the way for the Fanatics to enter the gambling arena. National Basketball Association rules do not allow owners to operate a gambling platform.
Fanatics has completed a number of acquisitions in recent years as a closely held company. In 2020, it acquired sports goods manufacturer WinCraftand earlier this year it bought card trading company Topped with $500 million. Fanatics is individually valued at $27 billion.
“As our Fanatics business grew, I also had obstacles to navigate to ensure our new business did not conflict with my responsibilities as a part owner. of the Sixers”, Rubin said in a statement posted on Twitter Wednesday announced the sale of its 76ers shares. “With the launch of our trading cards and collectibles business earlier this year – which will feature individual contracts with thousands of athletes globally – and the upcoming sports betting operation, the This new business will be in direct conflict with the ownership rules of sports leagues. Given these realities, I would be sad to have to sell my stake in the Sixers and go from partial owner back to being a part owner. become a lifelong fan.”
Rubin has no qualms about his desire to enter the sports gambling industry.
“We could be the world’s #1 player in that business in 10 years,” Rubin told Sports Business Magazine earlier this year. “That may seem ambitious to a non-business person today, but our strategic advantage is that we are one of the most popular digital sports brands and we attract a lot of attention. a lot of fans.”
The fanatic is one CNBC Disruptor 50, 21st place on this year’s list.
This story is evolving. Please check back for updates.
WATCH: Watch the full CNBC interview with Fanatics executive chairman Michael Rubin
