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PointsBet Ready to Hit Accelerator After Decent Q1

PointsBet Ready to Hit Accelerator After Decent Q1
Photo by Chris Liverani

PointsBet has put a bow on the first quarter of their fiscal year after launching in a major US state and signing a potentially game-changing partnership over the three-month period. Along with some shrewd partnership deals, PointsBet completed a $353.2 million capital raise at the end of September and has more than $457 million in cash or cash equivalents on hand, putting them in good standing with any future plans.

PointsBet’s newly formed presence in Illinois along with the enormous partnership deal they signed in Q1 with NBC Universal within the last three months should, in theory, set the Company up for years to come. But looking forward, they have signaled that they aren’t quite done with their growth strategy in the US just yet.

Some Q1 Numbers

PointsBet had a pretty strong quarter in both their native Australia and in the US. Altogether, the Company recorded a turnover of $691.9 million in the quarter, which represents a 193% increase over Q4 of last year which was seriously hindered by COVID-19. The win-rate for their operation globally also saw an uptick from in Q4. It was $38.1 million, or a 5.5 percent increased net win in Q1, which ended at the end of September.

As far as its US figures go, PointsBet USA saw its handle grow 130% to approximately $117 million. But due to advertising costs, promotional costs, and customer acquisition costs that accompanied their Illinois launch and because of bettors win-percentage being strong in September, revenue in the US came in at slightly more than $2 million, which is regarded as slightly disappointing but the cost of doing business.

Vision Going Forward

With cash on hand, PointsBet has been pointing toward further expansion in the US. As of now, the sports betting provider is live in four states but has its eye on two more prominent states with which to launch in the coming months.

PointsBet CEO Sam Swanell has mentioned the up-and-coming Colorado legal sports betting scene as their next destination, with another future Heavyweight Michigan next. The company hopes to have both states operating by January, which gives them two months to get their ducks in a row.

Virginia and Massachusetts are two other states that PointsBet allegedly has their eye on. Virginia has legislation in place but no specific launch date quite yet for legal sports betting while Massachusetts hasn’t legalized the platform just yet but us optimistic that legal sports betting will be coming to their state soon.

The NBC Factor

PointsBet’s partnership with NBC has given instant credibility to the sports betting brand and will allow it to enter new markets quicker than it did before. According to the PointsBet CEO, the brand hopes to enter new markets on day 1 of legalization in states.

NBC will take on a roll of using its widespread media reach to get people ready for PointsBet in new jurisdictions, weeks if not months prior to launch. NBC will in essence prime new markets for PointsBet’s launch in various states and give potential bettors in those jurisdictions a sense of what PointsBet is about well in advance of the provider coming to their state.

NBC also gives PointsBet an almost unrivaled media presence in the markets they are live in now.

Holding Its Own

PointsBet is still considered a middling sports betting provider in the US but their profile is about to surge thanks to their aggressive moves into new states and their relationship with NBC Universal.

The goal is to bring their US operations up to the level seen in their increasingly popular Australian platforms. Gross revenues for Australia came in at $60.5 million in Q1 while the US produced $9.8 million in gross revenues over that same period.

In the first quarter customer numbers, Australia grew 73.2% to 124,715, while its US customer base grew 158.9% to 39,816 which shows that the Company is on the right track to do just that.