PointsBet US Sports Betting Business Up for Sale Amidst 'Ferocious' Competition
We all called it just days ago.
Reports of PointsBet turning its attention away from the sale of its Australian business and now focusing on the US sports betting arm emerged last week (April 13).
From the Financial Review:
"PointsBet has appointed Moelis & Co as it attempts to accelerate the sale of its North American business as a long-flagged exit from its Australian bookmaking operations loses steam"
And now it was revealed just five days later (April 18), PointsBet is placing its US sports betting business up for sale amidst "ferocious" competition. The company is said to be the 7th biggest in the US regulated sports gambling sector.
Discussions with News Corp-backed Betr related to its Aussie business have stalled since they were initiated back in December.
Chief executive Sam Swanell is said to be reluctant to budge on a price tag of about $250 million for the local division.
The company rejected a $220 million bid from Betr last June.
PointsBet's US division is said to be "unprofitable". The company is believed to be sitting atop a $390 million cash pile nonetheless and buyers could be eyeing its handful of licences. PointsBet operates in 14 states at the moment, most recently in Ohio.
A PointsBet spokesman told Street Talk: “We believe further industry consolidation is inevitable, and we’ll position PointsBet to take advantage of movement in the sector.”
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The company has reportedly hired investment bank Moelis & Company to seek out potential buyers.
The only company thus far that has expressed interest in buying a stake in PointsBet is Fanantics, and that was over a year ago.
While PointsBet established a niche early in states like Colorado, it has struggled to gain market share overall against the stiff competition from the likes of FanDuel, DraftKings, BetMGM and Caesars.
- Aaron Goldstein, Gambling911.com
