PointsBet's recent expansion spells positive news for investors, according to Betsquare

PointsBet delivers optimistic news for stakeholders

PointsBet experienced remarkable growth in the third quarter of 2024, exceeding expectations in markets like Australia and Canada, as its net wins continue to amplify after the acquisition by Fanatics. 

In August 2023, PointsBet shareholders approved a strategy to return over AU$450 million to them following the transition of ownership to Fanatics.

With its roots in Melbourne, PointsBet has been making waves across US and Canadian markets, establishing itself as a household name in North American sports betting.

DraftKings and Fanatics engaged in a competitive bidding clash for PointsBet, with Fanatics emerging victorious, securing the purchase for $225 million in 2023.

The initial capital return, exceeding AU$315 million, was distributed in the autumn of 2023, while the second installment of $127 million ($0.39 per share) was announced in April 2024 and set to be paid by 16th May 2024.

The acquisition of PointsBet by Fanatics

By October 2023, an overwhelming 99% of PointsBet shareholders voted in favor of selling its US operations to Fanatics in a deal worth $225 million.

Fanatics, a company valued at $31 billion, secured sports betting licenses in states like New York, New Jersey, Pennsylvania, and Michigan as a result of acquiring PointsBet.

Initially, Fanatics offered $150 million to PointsBet, but a last-minute $195 million bid from DraftKings sparked a bidding contest that pushed the final purchase price to $225 million.

Many perceived DraftKings' eleventh-hour bid as a strategy to hinder Fanatics' entry into the US market. Despite increasing the purchase price, the strategy was unsuccessful, allowing Fanatics to debut an exciting sports betting platform stateside.

PointsBet on the rise

Awaiting the second capital return, PointsBet disclosed its third-quarter metrics. The handle was nearing $84 million, marking a 7.2% uptick.

Australia's net win saw a 20% escalation, reaching $60.8 million, while the gross win there increased by 9.4%, totaling $76.9 million.

On the player engagement side, PointsBet reported over 221,000 cash active players within the stipulated timeframe. These are players who have wagered with real money at least once in the past year.

These remarkable figures are complemented by a reduction in operational expenses, further highlighting the company’s robust growth trajectory.

During Q2, PointsBet's sales costs stood at $31.6 million, but these were trimmed to $29.7 million in Q3. Likewise, marketing expenditures decreased by $8 million to $14 million during this timeframe.

These figures marked PointsBet's first-ever positive net cash flow period, with the company recording a $2 million surplus.

Who is PointsBet?

PointsBet stands as one of the most notable bookmakers globally, providing sports betting solutions across Australia, Canada, the US, and Ireland.

The company began its journey in Melbourne, Australia, breaking into the market in early 2017. It pioneered spread betting in Australia, quickly earning acclaim for top-notch odds, a plethora of promotions, and superior live betting experiences.

PointsBet’s recognition grew partly due to its interactive Twitter presence. Australian bettors could propose market ideas to PointsBet via Twitter, and the bookmaker would assess and introduce unique markets based on these suggestions.

PointsBet's Australian success laid the groundwork for its 2019 US expansion, becoming licensed and regulated in states like New Jersey, Iowa, Illinois, and Colorado, among others.

PointsBetting – A Cornerstone in PointsBet's triumph

To cement its position among the US’s elite sportsbooks, PointsBet pioneered its PointsBetting style.

This innovative betting style, focused on high-risk, high-reward dynamics, quickly captured the attention of American betting enthusiasts.

Distinct from traditional fixed odds, PointsBetting scores or deducts points from bettors based on the accuracy of their wagers after settling.

In essence, each match, every yard, run, goal, and action has significance, as the PointsBetting model evaluates it all.

These advancements have fueled PointsBet's US expansion journey recently, significantly contributing to its impressive statistics in 2024.

Sports Betting in Australia & beyond

PointsBet's expansion and acquisition story reflects punters' pursuit of superior sports betting options in newly emerging markets in the US.

Success in Australia set the stage for PointsBet's American growth, with PointsBetting and enticing promotions playing pivotal roles.

You can check out the best gambling sites in Australia If you’re gearing up to place wagers on your favorite Aussie teams this year, it’s essential to gamble responsibly always bet responsibly, whether through PointsBet or any top-tier sports betting service.