PointsBet discusses selling Australian operations to Betr

PointsBet, an Australian online sportsbook company, is in talks to sell to Betr, a new wagering operator. The $411 million company would focus on US expansion after selling the Australian business to the start-up, which would take over 232,000 PointsBet clients.

Deal:

PointsBet announced in a press release to ASX on Wednesday morning that it is considering selling its Australian business to the News Corp-backed wagering startup: “PointsBet confirms that it is now in discussions with [the] owners and operators of Australian wagering operator Betr, considering a potential deal involving the sale of its Australian trading business,” the statement stated.

The statement added that these talks may not result in a deal.

Technology and market share

News Corp, Tekkorp Capital, and ASX-listed BetMakers Technology Group hold Betr. Betr might use such technology to grow faster after the deal.

PointsBet aims to quadruple its five-percent position of the Australian online sports betting market by 2025. The seventh-largest operator in America with a 3.7 percent market share in this $13 billion-turnover business, the corporation also operates in Canada.

Conversations:

Betr bought online sportsbook TextBet for $10 million after PointsBet rejected the deal earlier this year. Industry sources valued the bid at $220–300 million. PointsBet’s share price rose more than 7% after the purchase news, but Betr and PointsBet didn’t discuss price.

Gains:

Betr would acquire 232,000 Australian PointsBet users, who generated over $600 million in 2022 Q3, if negotiations succeed. PointsBet presently operates in 13 US states, including Colorado, New York, Pennsylvania, and Illinois. Selling the Australian firm would allow it to focus on US expansion.

They lost $240 million on sales and marketing, including $162 million in the US, for two years. Betr’s cost-efficiency calculations for the Australian market will determine whether it sells its Australian operation to grab a bigger piece of America’s $13 billion cake.

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