7th-Largest Operator PointsBet to Sell American Division

• PointsBet is the seventh biggest sports betting company in the U.S. and will now be selling its North American division.
• Heading into 2023, the operator posted some impressive numbers with over a billion dollar handle for the first half of the fiscal year.
• Prospective buyers have not been revealed but Betr was previously in talks to acquire the company’s Australian operations.

DENVER – A new development in the United States betting scene is unfolding with well-known operator PointsBet aiming to sell the company’s North American Division. This decision comes following the company hiring investment bank Moelis & Company to sell the business.

While PointsBet was struggling to carve out market share in the U.S., the operator did manage substantial growth year-over-year, making it a likely hot commodity to prospective buyers. With a sizeable infrastructure already in place as well as operation in over a quarter of states, the sale of PointsBet will no doubt change the legal sports betting landscape.

What Makes PointsBet a Good Investment?

Despite PointsBet generally struggling to create a significant market in the U.S., the company performed admirably over the last couple years. During the last six months of 2022, the company reported $120 million in revenue which equates to a 28% increase from the same time frame a year earlier.

While not the size of mega-giants in the industry like FanDuel or DraftKings, PointsBet does feature operation in 14 states as well as Canada’s Ontario province. In addition, the company worked with various partners to reduce its expenses, such as canceling its Massachusetts application or renegotiating marketing plans with NBCUniversal.

PointsBet has also posted handle numbers exceeding a billion dollars for the first time, which also signified a huge 66% increase from the year prior. With $2.2 billion in total handle for the first half of the 2023 fiscal year, the company does have a good prospect to keep on growing and rising up the ranks.

Is a Sale Imminent?

While all of these numbers do sound strong, there is still uncertainty around what company would look to acquire PointsBet.

Betr and Fanatics both could be potential suitors, as they had both looked into acquiring the company in 2022, but nothing materialized from that. Betr had offered for the Australian sports betting division, making it unclear if they are also interested in the North American operations.

Bally’s has also frequently popped up as a possible buyer, with the company undergoing a relatively aggressive acquisition campaign that saw it take in both Bet.Works and Gamesys Group back in 2021.

Regardless of who the buyer is, they will be gaining a big boost to total player base as well as secure a growing company that has been trending upwards for over a year. It is clear that any big mergers could substantially alter competition in the legal sportsbook sector.

News tags: Ballys | Bet.Works | Betr | Canada | DraftKings | Fanatics | FanDuel | Gamesys Group | Massachusetts | Moelis & Company | NBCUinversal | Ontario | PointsBet