PointsBet, based in Australia, has reportedly struggled to gain market share in the US and has put its North American business on the market. Investment bank Moelis & Company has been brought in to facilitate the sale.
The sports betting company has ranked as the seventh-largest in the US, with operators DraftKings and FanDuel in the top two spots. A spokesperson for PointsBet told The Australian Financial Review, “We believe further industry consolidation is inevitable.”
PointsBet posted $120m in revenue for the latter half of that year, which was a 28% increase. However, this year-over-year progress was due mostly to reduced marketing costs and a renegotiation of a deal with NBCUniversal.
PointsBet’s sportsbook is live in 14 states, but also reportedly saved money by withdrawing an operator’s application for the recently-launched market of Massachusetts.
Last month, a partnership between PointsBet and the University of Colorado was terminated only one day after the American Gaming Association announced a ban on collegiate alliances with sportsbooks. A statement from both the university and PointsBet said that the end of the partnership was “mutually beneficial.”
However, the sportsbook also became part of a Responsible Gambling Coalition in March, along with Bally's, BetMGM, DraftKings, Entain, Fanatics, FanDuel, Hard Rock Digital and MGM Resorts International.
Microbetting company, Betr, was in discussion with PointsBet about the sale of the company in late 2022, but a sale was never completed. Fanatics also considered buying the company over a year ago.
The total sports betting handle reported by the company was $1.1bn for the first half of 2023, which means that it could still attract a buyer.
