PointsBet is entertaining the idea of selling its US sports betting business and has tasked an investment bank with preparing the ground for a sale of its North American assets. PointsBet is among the largest bookies in North America and has the seventh-biggest market share in the US. However, it is yet to become profitable, so it has hired Moelis & Company investment bank to get things ready for a potential sale of its North American operations.
PointsBet has also been exploring the possibility of selling its Australian wagering business recently. However, a bid from its Australian rival betr was rejected in December 2022 after PointsBet decided it did not reflect their valuation of the company. Reports said the bid was in the $135 million-$168 million region. Since then, there have been no new offers for PointsBet’s Australian betting division.
Anticipating Industry Consolidation
That’s why PointsBet is now, once again, focusing on selling the US business. A PointsBet spokesman told The Australian Financial Review that they were confident that “further industry consolidation” was inevitable and they were positioning PointsBet to make the most of the situation and “movement in the sector.”
The company reported revenue of $120 million in the first half of FY2023. That represented a 28% increase compared to the same period last year. PointsBet also informed of total sports betting handle of $2.2 billion in H1 FY2023 and $1.1 billion sports betting handle in the US market, a 66% year-on-year increase.
The Australian-based wagering operator is available in 14 US states and operates in Ontario, Canada too. The positive results posted for H1 FY2023 made it possible for PointsBet to extend its partnership with NBCUniversal and have also invited interest from suitors.
Bally’s and Barstool Looking to Make Bids for PointsBet
Reports claim that Bally’s and Barstool are two potential buyers for PointsBet’s business in North America. Bally’s has been on a spending spree recently and has expanded its business by acquiring other sports wagering businesses. In 2021, it acquired Bet.Works for $125 million and Gamesys Group for $2.7 billion.
Barstool Sportsbook is also reportedly interested in making a bid for PointsBet. The Penn Entertainment business wants to increase its already sizeable US market share and is considering bidding for PointsBet as part of that endeavour.