PointsBet Confirms Preliminary Sale Talks With Betr
Vultures are circling around PointsBet, with potential suitors lining up the company’s Australian and American wagering businesses. The company focuses on sports betting and does not offer online casino games or online pokies. That remains true if fellow Australian betting company Betr acquires the business. PointsBet confirmed it is in talks over a potential $250 million sale to the fast-growing betting firm, which Matthew Tripp heads up. The statement reads:
“PointsBet Holdings Limited refers to recent media speculation, first published in The Australian on Friday, 23 December 2022, regarding a potential transaction involving the sale of its Australian trading business. PointsBet advises that as part of its ordinary course of business, it routinely explores options to maximise value for shareholders, including evaluating proposals from third parties that are received from time to time.”
“We confirm that PointsBet is currently in discussions with NTD Pty Limited, owners and operators of Australian wagering operator Betr, regarding a potential transaction involving the sale of our Australian trading business and notes that any potential transaction will be assessed in the context of PointsBet’s global strategy and opportunities.”
“Discussions between PointsBet and NTD are incomplete and preliminary in nature. There is no certainty that these discussions will result in any binding transaction.”
PointsBet is Haemorrhaging Money in the United States
PointsBet is one of the most established betting brands in Australia. It is attempting to get a foothold in the potentially lucrative American market. The company has licences in 13 states in addition to the Canadian province of Ontario. However, launching in the United States comes with significant costs, particularly marketing spending.
Sam Swannel, the PointsBet CEO, revealed in August that his company has 3.7% market share in the US. This is enough to put the company seventh in terms of market share in America. However, reaching such lofty heights has come at a cost, with the company spending vast sums of money advertising.
Swannel’s company spent US$110 million ($221 million), leading to losses of over US$180 million ($265 million) last year. Experts panned some of the company’s adverts, with the US Ad Standards Agency billing its Shaquille O’Neal ad as the worst commercial of 2022.
The ad featured former NBA star O’Neal struggling to make sense of Australian accents. Viewers filed a record number of complaints. Another featured NFL star Drew Brees. PointsBet pretended Brees was injured after lightning struck him. However, it was a hoax, and the lightning link was there to shed light on the company’s Lightning Bets feature
What Does Betr Get For Its Money?
Australia’s Betr is the favourite to acquire PointsBet. The fast-growing brainchild of Matthew Tripp will see an additional 232,000 active clients if it purchases the company’s Australian business. Those clients turned over $612 million in the last quarter of the financial year.
Betr added almost 300,000 new customers during spring racing. Offering a well-time 100/1 promotion for any bet saw people flock to Tripp’s site in droves. Although Betr is keen on PointsBet’s Australian business, it is yet to discuss acquiring its American assets. A company called Betr already exists in the US, which means the Aussie Betr would need to rebrand or use the PointsBet name.
The American Betr focuses on micro-gambling and avoids casino games and pokies. Prominent YouTuber turned boxer Jake Paul dreamed of creating the TikTok of gambling. Fundraising efforts raised US$50 million ($74 million), leading to the site’s launch in September 20022.
Betr allows customers to bet on every moment of every live sporting event. Customers place bets on individual plays and drives, pitches and bats, and shots and possessions instead of match-long bets such as the winner or loser. The app has proven popular but experts worry Paul’s fame among youngsters could lead to them taking up gambling sooner.
