Australian sportsbook and iGaming operator, PointsBet, announced third-quarter 2024 net revenues of $46 million (U.S.) which is up over 24% from Q3 2023.
Improved Growth
The Canadian market positively impacted earnings across the board for PointsBet, delivering for AU$5.5 million its iGaming operations in the Great White North and a 22.3% year-over-year increase to AU$65.1 million sports betting division. The second consecutive capital return netted AU$0.39 per share for a total of AU$127 million which no doubt reflected positively for its investors.
These strategic capital returns follow the sale of its U.S. assets to Fanatics Betting & Gaming in which the company promised to pay out AU$458 million to shareholders to investors in a staggered disbursement. The latest discharge of payments will be dispersed on May 16, 2024.
The integration of Strive Gaming technology and its Infinity Engine into the PointsBet platform was also completed during the third quarter of last year. This upgrade will enhance the iGaming experience of PointsBet’s customers and exponentially increase its gaming catalog.
“As the iGaming landscape evolves rapidly, we are excited to continue our expansion in North America and add a top-tier operator like PointsBet,” said Max Meltzer, CEO of Strive Gaming. “Partnering with this incredibly smart and technology-focused business is a testament to the quality of our platform and people. We look forward to working closely with PointsBet to deliver a world-class online casino experience to their users.”
U.S. Market Exit
A big splash was made during the summer of 2023 when a bidding war erupted for PointsBet’s U.S. assets. The exit from the United State’s gaming industry was part of a comprehensive strategy to focus on the markets in which PointsBet was familiar and had been profitable.
Boston-based online sportsbook DraftKings had submitted an initial bid of $150 million before upping their offer to $195 million. But Fanatics Betting & Gaming swooped in with a $225 million bid that was ultimately accepted and approved by over 99% of the shareholders.
Once the deal was consummated, PointsBet Chairman Brett Paton said, “Fanatics identified in PointsBet many of the attributes needed to be successful in entering the online market. In turn, Fanatics have a strong brand and an extensive sports customer base with a fanatical interest in sports.”
“We doubt anyone expected FanDuel and DraftKings to become effectively a sports betting duopoly. It points to the huge incumbency benefits these companies have in the US market. However, we are one of the only international operators to have gained a worthwhile market share. There are over 60 online sports betting operators in the market. Only seven brands, including PointsBet, have a market share of more than 1%, with the remaining 53 companies competing for the rest,” Paton added.
New Horizons
Fanatics has aggressively leveraged the acquisition by gaining a foothold in those markets in which PointsBet had operated. The regulatory hurdles have been cleared and Fanatics is now operating in 19 states.
Matt King, CEO of Fanatics Betting and Gaming, said, “The acquisition of the US businesses of PointsBet has supercharged our expansion plans. In addition to our migration of PointsBet customers and technology to the Fanatics Sportsbook and Casino platform, we have also added an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business.”
