CNBC has reported that the sports merchandising company, Fanatics is involved in serious discussions to purchase sports betting company Tipico.
While an official deal hasn’t yet been signed, talks are ongoing, with decisions still need to be made about a price.
Tipico is considered the leading sports betting provider in the German betting market. It also operates a smaller sports betting business in the United States. It is licensed to operate in New Jersey and Colorado.
Fanatics is in the process of clearing any obstacles in its way to enter the gambling industry. Last week, its executive chairman, Michael Rubin, announced that he was disposing of his 10% stake in Harris Blitzer Sports Entertainment, owner of the New Jersey Devils and Philadelphia 76ers.
The reason for this move is because National Basketball Association rules bar team owners from owning a betting platform.
Rubi issued a statement last week saying: “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.”
“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.”