Betr Secures $250 Million for PointsBet Bid

Ben H / 3 March 2023

Australian betting operator PointsBet recently announced a net loss of $178 million for the six months to December 2022. PointsBet almost doubled its revenue in the North American market.

However, with marketing costs increasing, the revenue boost didn’t improve the bookmaker’s bottom line. In fact, the betting operator’s loss widened by 25% compared to last year.

That led to talk about PointsBet selling its Australian betting business to betr, the bookie backed by News Corp and Australian wagering personality Matthew Tripp.

$250 Million Deal Is in Final Stages, Report Says

PointsBet CEO Sam Swanell said that the betting operator had created a lot of value, so it was only natural that there were interested parties. However, he didn’t give away any details about the potential deal with betr.

Swanell said that conversations of acquisitions and takeovers were common in the sports betting industry, but was reluctant to go into details about the terms of any prospective deal.

However, wagering industry sources say that the transaction between the two Australian bookmakers is in its final stages. According to The Australian Financial Review, betr has already secured the money needed to fund the deal.

The bookmaker asked Barrenjoey, a financial services company, to help with allocating the funds needed for the acquisition. The deal is reportedly in the $250 million region.

Mounting Marketing Costs to Soon Drop

PointsBet is currently “at an inflection point,” according to Sam Swanell. Revenue from the North American market is steadily growing, and the PointsBet chief executive also noted that the company’s US marketing was becoming more efficient and would further stabilize with time.

He predicted that the betting operator’s rising marketing costs would drop to $133 million after they reached stratospheric heights in 2022 ($175 million).

Swanell concluded that the growth of North American revenue and lower costs were definitely a “good story” for the bookmaker.

However, the market didn’t seem to be too impressed by the report and Swanells words. PointsBet’s share price (ASX:PBH) dropped 21% to $1.14 on Tuesday morning. It later recovered to $1.26.

The verdant surroundings and rustic ambience of Warwick Farm lend a distinct racing charm. While racing takes held on 23 Wednesday afternoons, the Australia Day race meeting in January is the main event. The racecourse is at the centre of a community that ...

The Warrnambool Racecourse is located in the suburb of Warrnambool, in a picturesque valley with great natural viewing platforms. Warrnambool Racecourse is around 260 kilometres from Melbourne’s CBD.

Terang Racing Club, sometimes known as the Flemington of the Bush, has a long and rich history of racing in the southwest. The expansive course was designed by the same person who created the Flemington track. The facilities include a well-kept, vast grandstand with a...

Swan Hill Racecourse is located in the centre of the Murray Region, 340 kilometres from Melbourne.Swan Hill Racecourse June racing festival has earned a name for itself as the best country festival in the state, if not the entire nation. The advice is to book as soon as ...

Sale Racecourse has first-rate facilities, including a wholly climate-controlled Public Bar and Grandstand Bar open on race days.The take pleasure in being a community club that includes our surrounding townships. Because of their family-friendly ambience and specific ...

Ben H
Ben Harris is the Communications Manager for KRUZEY, an AFL expert, and writer. He has one daughter that he loves dearly and four children's books... [Read full bio]

Comments are closed.

Think. Is this a bet you really want to place? Set a deposit limit.

For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au