PointsBet’s Growth is Good News for Investors | Betsquare

PointsBet’s Growth is Good News for Investors 

PointsBet enjoyed significant Q3 growth in 2024 and is surpassing expectations in Australia and Canada as its net win continues growing following its acquisition by Fanatics. 

Back in August 2023, PointsBet shareholders agreed to a plan to see more than AU$450 returned to shareholders following the company’s sale to Fanatics. 

PointsBet, headquartered in Melbourne, has been excelling in the US and Canadian markets over the past few years and is one of North America’s most recognisable sports betting brands. 

The company was subject to a fierce bidding war between DraftKings and Fanatics, with the latter ultimately triumphing to purchase PointsBet for $225 million in 2023. 

The first capital return of more than AU$315 million was distributed in the fall of 2023, and its second capital return, totalling $127 million ($0.39 per share), was confirmed in April 2024. The return will be paid on 16 May 2024. 

Fanatics’ acquisition of PointsBet 

In October 2023, 99% of PointsBet shareholders voted to sell its US business to Fanatics in a deal worth $225 million.

Fanatics, a company worth $31 billion, acquired sports betting licenses in New York, New Jersey, Pennsylvania, and Michigan following its PointsBet acquisition.  

Initially, Fanatics had agreed a deal with PointsBet worth $150 million, but DraftKings submitted a last-minute bid of $195 million, prompting a bidding war that eventually drove the price of the company up to $225 million. 

Many saw DraftKing’s eleventh-hour bid as an attempt to block Fanatics’ arrival into the US betting market. While it increased the price, the ruse failed, and Fanatics now operates one of the most exciting sports betting platforms on US shores. 

PointsBet on the rise 

While anticipating the second capital return, PointsBet released its Q3 figures. The overall handle in Q3 was just short of $84 million, which represented a rise of 7.2%. 

The net win in Australia was up by 20%, worth $60.8 million, while the gross win in Australia climbed 9.4% to $76.9 million. 

In terms of bettor numbers, PointsBet recorded more than 221,000 “cash active players” in the period. Cash active players are bettors who have placed at least one cash bet in the last 12 months. 

These impressive figures are coupled with a decline in operating costs, further accentuating the company’s impressive growth and rise. 

In Q2, PointsBet accounted for sales costs of $31.6 million, but these were down to $29.7 million in Q3. Equally, marketing costs dropped by $8 million to $14 million in the same period. 

These figures contributed to the first positive net cash flow period in PointsBet’s history, with $2 million posted by the company. 

Who is PointsBet? 

PointsBet is one of the world’s most prominent bookmakers, offering sports betting options in Australia, Canada, the United States, and Ireland. 

The company was established in Melbourne, Australia, and entered the market in early 2017. It became the first Aussie bookmaker to offer spread betting and quickly gained a reputation for excellent odds, lots of promotions, and high-quality live betting markets. 

PointsBet also gained a reputation for its Twitter account. Any Aussie punter could Tweet a potential market to PointsBet, and the sportsbook would price it up and offer any unique market. 

The success of PointsBet in Australia led to the launch of the sportsbook in the United States in 2019. It became a licensed and regulated bookmaker in New Jersey, Iowa, Illinois, and Colorado, as well as several other states.

PointsBetting – Key to PointsBet’s success 

To establish itself as one of the leading sportsbooks in the United States, PointsBet created its PointsBetting form of betting. 

This is a high-risk, high-reward form of sports betting that quickly gained traction within US betting markets. 

This betting option contrasts with fixed odds offers, as it rewards or docks points to bettors based on how right or wrong their bet is once it is settled. 

In other words, in every game, every yard, run, goal, and play matters, as the PointsBetting system takes everything into account. 

Such innovations have fuelled PointsBet’s growth in the United States in recent years and is one of the main reasons for such impressive figures in 2024. 

Sports Betting in Australia & beyond 

The growth, expansion, and acquisition of PointsBet is indicative of punters’ search for the best sports betting options in the newly established sports betting markets in the United States. 

PointsBet’s success in Australia laid the foundation for its expansion into America, with PointsBetting and attractive promotions playing a big role in the company’s success. 

You can check out the best gambling sites in Australia if you’re keen to bet on your favourite Aussie sports this year. Please remember to gamble responsibly and always bet within your means, whether at PointsBet or any other leading sports betting platform.