26 April 2023
PointsBet considers sale of US business after failed Australian sale
Reports suggest that PointsBet is considering selling its US business after failing to sell its Australian operations. The Australian Financial Review (AFR) reports that the company turned its focus to its US business after parties interested in buying its Australian arm halted discussions due to the high asking price of AU$250m. Despite the division being unprofitable and under intense competitive pressures, there are still valuable assets that could be attractive to potential buyers, such as licenses and expertise.
A spokesperson for PointsBet did not deny the reports and told iGB that the company is positioning itself to take advantage of any future industry consolidation. Meanwhile, PointsBet’s US division has reached a new net win record for the three months ended 31 December 2022. However, the company’s 2022 half-year results showed that most of its costs were attributed to its American operations.
PointsBet’s CEO, Sam Swannel, acknowledged the challenges but stated that the company’s American strategy was delivering results nonetheless. This potential sale of its US business could signal a significant shift for the company and the broader sports betting industry, as consolidation continues to drive growth and competition.