Sports Betting Company Up For Sale
Australian based sports betting company PointsBet is looking to sell its US business and according to reports have hired investment banking firm New York-based Moelis & Company to help find a buyer.
PointsBet have failed to make a major breakthrough in the North American market because of the dominance of competitors such as DraftKings and FanDuel and unable to keep up with the massive marketing spend needed to make an impact there.
Currently PointsBet is ranked the seventh largest sports betting operator on the US and in a recent comment a spokesperson for PointsBet said, “We believe further industry consolidation is inevitable,” going on to say in a recent piece in the Australian Financial Review. “We’ll position PointsBet to take advantage of movement in the sector.”
Indeed only last year PointsBet considered selling its Australian business to Betr, one of the largest operators in Australia for what was thought to be worth around $160 million. However by the end of 2022 an offer from Betr did not meet the expectations of PointsBet and was rejected.
It was thought at the time that the Australia sale would help propel PointsBet in marketing in the US more, however the decision now is to sell of its North American assets and is causing some interest according to reports.
With PoitsBet reporting $129 million in the final half of 2022 representing a 28% rise in revenues and in full year results the company showed a sports betting handle of $1.1 billion. At present PointsBet operates in 14 states along with Ontario in Canada and with it reducing now its marketing spend in the US the company is looking attractive to buyers looking to expand further into the US.
