PointsBet CEO Expresses Optimism for Company Despite U.S. Sports Betting Departure

Earlier this year, PointsBet, an Australian company, made waves in the global sports betting industry by selling their U.S. assets to Fanatics Betting & Gaming for a whopping $225 million.

PointsBet was anticipated to be the seventh-largest sports betting provider in the American market but did not succeed in competing against the top sports betting sites. As a result, PointsBet withdrew from 17 U.S. states, including the profitable New York sports betting market.

At the recent AGM, PointsBet CEO Sam Swanell expressed confidence in the future of the company in both the Australian and Canadian markets. He highlighted the company’s advanced technology suite, which is projected to drive profits as soon as 2025.

Q1 numbers and beyond

PointsBet’s fiscal year 2024 Quarter 1 concluded on September 30, with earnings that were deemed respectable, even after withdrawing from one of the world’s most popular and rapidly growing sports betting markets.

Even though there was a 3% decrease in overall handle in Q1 compared to the previous year, PointsBet forecasts a net revenue of $159 million for 2023, representing a 10% growth from the previous year. Analysts at PointsBet are expecting a 10%-20% increase in net win for the fiscal year 2024.

During the recent AGM, Sam Swanell stated that the company is still on course to reach breakeven this year and he foresees additional growth for the entirety of fiscal year 2025.

Technology the key

The CEO of PointsBet expressed optimism for the future, attributing it to the company’s proprietary technology. This platform facilitated $7 billion in wagers during the last fiscal year.

PointsBet has maintained ownership of their “Oddsfactory” technology, which is globally licensed. This comprehensive technology suite offers high-quality in-play parlay wagering products for sports bettors and sportsbooks worldwide. This includes Fanatics Underscoreg, now available in PointsBet’s former American market jurisdictions.

Sam Swanell informed shareholders that the sale of the platform to Fanatics has confirmed the robustness of their technology. Despite granting Fanatics a perpetual license to the platform, ownership of the technology remains with PointsBet. This allows them the flexibility to further develop and capitalize on the technology in a way that maximizes value for shareholders.

It is crucial for shareholders to recognize the significant value our technology holds. It is a key aspect of our company and indicates a promising future for both the Australian and Canadian business.

He concluded that their technology organization is not only agile but also a powerful and reliable machine capable of handling both horizontal and vertical scaling needs of the market. This makes their app highly user-friendly and efficient. He believes their technology will continue to drive their success in the upcoming year and beyond.

Well situated?

PointsBet has shifted its focus. Although it has not achieved its goal of dominating the vast U.S. market, the company remains optimistic about its profitability, with technology as its key driver.

PointsBet has consistently held a strong market presence in Australia and is poised to maintain that position. Additionally, the betting activity in Canada has experienced a notable 111.4% year-over-year growth, showing promising potential for the market.

Swanell stated that in FY25, the goal is to make Canada profitable, as the Canadian business offers shareholders ongoing access to the rapidly expanding North American market in a more appealing jurisdiction than many U.S. states.

Swanell also highlighted PointsBet’s online casino as a key focus for future growth.