According to the Australian Financial Review (AFR), the decision to sell the US business stemmed from the failed attempted sale of PointsBet’s Australian business.
PointsBet was in talks to sell the Australian arm of its company to NTD Limited – a business led by News Corp – late last year. Parties that had expressed interest in acquiring the Australian arm have since paused discussions due to the fixed AU$250m (£135.3m/€153.3m/US$168m) price tag attached, as reported by the AFT.
Subsequently, the company turned its attention to its US business. While the the division remains unprofitable and subject to intense competitive pressures, there may be assets valuable to buyers including its licences and expertise.
In response to reports, PointsBet told iGB: “We believe further industry consolidation is inevitable, and we’ll position PointsBet to take advantage of movement in the sector.”
US division performance
PointsBet’s performance in the US reached a record high for net win in the three months ended 31 December 2022.
Despite this, much of PointsBet’s costs – as highlighted in its 2022 half-year results – went to its American operations. Sam Swannel, managing director and group CEO at PointsBet, said at the time that the operator’s American strategy was “delivering” nonetheless.