PointsBet, the Australia-based betting operator, has hired Moelis & Company as an investment banker to help it sell its North American operations. This is because the business has failed to increase its market share in the United States.
The company, which is reportedly the country’s seventh largest sports betting operator after DraftKings and FanDuel, has struggled to acquire market share in the US. In a statement, PointsBet said: “We believe further industry consolidation is inevitable.”
In late 2022, there were discussions of selling PointsBet to Australian betting giant Betr, but the deal was never finalized.
The company reported $120 million in revenue for the second half of 2022, up 28% year-over-year primarily due to lower marketing expenses and the renegotiation of its marketing agreement with NBCUniversal.
By taking its app out of operation in Massachusetts, which legalized online sports betting in March, it also saved money. In addition, the sports betting service is in operation in 14 states.
While PointsBet’s US operations have been poor, they have not been ineffective. In the first six months of fiscal 2023, it reported a total of $1.1 billion in sports betting. More than a year ago, there were reports that Fanatics had considered buying the business.
PointsBet has joined the Responsible Gaming Coalition
Recently, three operators — PointsBet, Fanatics and Hard Rock Digital — have joined the Responsible Gaming Coalition, formed last year.
Rachel Kasper, SVP Legal and Compliance at PointsBet US, said: “Responsible gaming is a key priority for our business and requires meaningful collaboration with all stakeholders, including competing operators in the same markets, to promote this aspect of our industry and ensure safe practices are followed.”
