New York regulators are reviewing a major acquisition proposed by two operators of sports betting sites — only one of which has a license to take action in the Empire State.

Fanatics Betting and Gaming, the legal sports betting arm of merchandise giant Fanatics, recently revealed it is proposing to buy the U.S. assets of PointsBet Holdings Ltd. for $150 million.

The deal is big for a few reasons, including the licenses PointsBet has obtained in the U.S. to date, such as a costly one for New York sports betting.

Fanatics bid for a New York license but lost out to others, including PointsBet. Fanatics has since opened a retail sportsbook in Maryland and is testing out its mobile sportsbook in Ohio and Tennessee.