Australian-based PointsBet dominated global sports betting industry headlines earlier this year with the sale of their U.S. assets to Fanatics Betting & Gaming for a price tag of $225 million.
PointsBet had been estimated to be the seventh-biggest sports betting provider in the American market but failed to gain traction vs. the best sports betting sites. PointsBet pulled out of 17 U.S. states, including the highly-lucrative New York sports betting market.
PointsBet chief executive Sam Swanell preached optimism for his company going forward in the Australian and Canadian markets at the company's recent AGM. He also touted the company's technology suite that is expected to carry the company to profits as early as 2025.
Q1 numbers and beyond
Quarter 1 of PointsBet's 2024 fiscal year ended September 30. Earnings from that quarter were respectable, despite exiting one of the most popular and emerging sports betting markets in the world.
Despite a year-over-year 3% Q1 dip in overall handle, PointsBet was able to project net revenue of $159 million for the full year 2023. That would be about a 10% increase from the same period last year. PointsBet analysts are projecting a 10%-20% improvement in net win for FY2024.
At the recent AGM, Sam Swanell said that the company remains on track to break even this year and he sees further growth for the full fiscal year 2025.
Technology the key
The PointsBet CEO pointed to the company's proprietary technology for his optimism going forward. It is a platform the was part of $7 billion in wagers during the last fiscal year.
PointsBet has retained their “Oddsfactory” technology, which is licensed around the world. It is a full technology suite that provides top-tier in-play parlay wagering products for sports bettors and sportsbooks around the world, including Fanatics Sportsbook, that now operates in PointsBet's previous jurisdictions in the American market.
Sam Swanell told shareholders: “The strength of our technology has also been validated through our sale of the platform to Fanatics. While we have provided Fanatics with a perpetual licence to our technology platform, importantly we retain ownership of this technology. That means we can develop and exploit it in a manner that creates the most value for PointsBet shareholders.”
“I believe it is important for shareholders to understand just how valuable our technology has become. It has been one of the critical features of our company and it bodes well for the value and the future of the Australian and Canadian business.”
He concluded that: “The bottom line is that our technology organisation is not just agile; it’s a powerful, reliable machine that can handle both the horizontal and vertical scaling needs of the market, making our app highly user-friendly and efficient. We believe our technology will continue to drive our success in the upcoming year and beyond.”
PointsBet has done a pivot. While not realizing their goals of becoming a dominant force in the huge U.S. market, the company believes it will be profitable, and the technology seems to be their path.
PointsBet has always had and will maintain a reasonable market share in their native Australia, and Canada’s market has seen an encouraging 111.4% year-over-year increase in betting activity.
“In FY25, we want Canada profitable. The Canadian business provides shareholders continued exposure to the fast-growing North American market through a jurisdiction that is more attractive than most U.S. states,” said Swanell.
Swanell also mentioned PointsBet’s online casino as a targeted area of growth.