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PointsBet wagers growth in the US sports market

March 10, 2021

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PointsBet wagers growth in the US sports market

With the repeal of legislation which banned US sports betting at a federal level, it is now up to US states to decide to legalise sports wagering. With sporting events at the heart of US culture, this has opened up major expansion opportunities for PointsBet (ASX: PBH), a corporate bookmaking company that is rolling out its successful sports wagering platform across the US.

With the repeal of legislation which banned US sports betting at a federal level, it is now up to US states to decide to legalise sports wagering. With sporting events at the heart of US culture, this has opened up major expansion opportunities for PointsBet (ASX: PBH), a corporate bookmaking company that is rolling out its successful sports wagering platform across the US.

“PointsBet was established in 2015 specifically to focus on the emerging opportunities in US sports,” said Andrew Mellor, PointsBet’s Chief Financial Officer.

Last year saw a particularly important strategic development for PointsBet. They secured a deal with US broadcaster NBC Universal to become the official sports wagering partner.

“NBC ran a competitive process to determine their sports wagering partner in the US and selected PointsBet over all the other operators to be their bet on the US sports wagering opportunity. There were equally things we wanted from NBC – the hugely deep and wide nature of their media assets. NBC’s media assets offer more than just traditional TV advertising, they have deep digital, regional and local assets. We have committed to spend 5 years and $393 million with NBC on marketing to be paid via both cash and equities. That ensures NBC and PointsBet are completely aligned into our strategy,” said Andrew.

“We have their deep array of assets at our disposal to pick and choose how we want to execute over the next 5 years,” he added.

For example, PointsBet achieved 4 times the turnover and 12 times the activation of first time betters for the 2021 Super Bowl, compared to 2020. Importantly, while some of the majors experienced downtime on their platforms, PointsBet’s in-house developed app experienced no outages.

“That is the key part of our strategy, a focus on technology and product. It’s recognised in the US that an in-house technology strategy is the key to success. It’s really come full circle now that the clear view of US operators is that in-house products will win in the long-term in the US,” said Andrew.

PointsBet aims to have 10% market share in the states it operates in by 2025. They are on track to do this as they already have a 10.8% market share in New Jersey and 8.9% in Illinois, where they have been operating for just four months.

 

PointsBet’s CFO, Andrew Mellor, recently joined us for our fortnightly webcast ‘The Insider: Meet the CEOs’. This article summarises some of the information he shared with us during the session. You can watch a full recording below, or you can click here to book into our next session where we will be joined by Gerry Sakkas, CEO of PlaySide Studios (ASX: PLY) and Steven Yatomi-Clarke, CEO of Prescient Therapeutics (ASX: PTX). 

‘The Insider’ is a great way to hear directly from the CEOs of fast growing Australian businesses. You will get valuable insights to their industries and companies future prospects.

 

The Insider: Meet the CEOs – Event Details:

Date: Wednesday, 17th March
Time: 12pm AEDT
Format: Online, 2 x 15 minute presentations

This is a free event. Click here to book your spot.

 

 

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Past performance is not a reliable indicator of future performance.

 

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