PointsBet will not require any further external funding to become EBITDA profitable in 2024, according to chairman Brett Paton.

Speaking at PointsBet’s Annual General Meeting, Paton updated shareholders on the company’s 2024 strategy following the ongoing sale of its US operations to Fanatics.

Canada focus

As part of an aim to reach profitability next year, Paton highlighted the improved structure of PointsBet’s Canadian business.

He suggested that Canada’s lower capital requirements and higher operating margins, relative to most US states, create “strong prospects for attractive future economics.”

In an accompanying speech, CEO Sam Swanell echoed this sentiment, highlighting the market’s lack of partner fees, workable tax rate, and inclusion of iGaming.

“We believe the early stage of the Canadian business compliments the more mature Australian business, as well as providing an opportunity to leverage attractive features of our tech stack that aren’t available in the Australian market,” said Swanell.

Alluding to the attempted purchase of PointsBet by Matthew Tripp’s Betr venture, Paton also said previous M&A interest validated the company’s “strategically important place” in the Australian market.

Fanatics sale

The business also provided an update on the ongoing sale of its US business to Fanatics Betting & Gaming.

The deal saw the sports merchandise giant gain access to 15 US states through the company’s market access agreements, with PointsBet having transferred control of 10 states total so far.

Paton said the completion of the $225m sale is “on track as anticipated” by March 2024.

He added that the remaining PointsBet business, active in both the Australian and Canadian markets, will benefit from a “more focused approach” given its newly streamlined nature.

After the full closing of the deal, he said the group’s EBITDA would be “close to breakeven”.

“Importantly, we do not anticipate any external funding requirements to deliver this result,” Paton concluded.

Swanell highlights strength of tech  

Another theme highlighted by PointsBet’s senior management team was the value of its in-house wagering technology assets in Banach.

While the operator sold the provider’s live odds technology to Fanatics as part of the acquisition, it retained a licence to use and further develop Banach assets outside of the US. It also kept its proprietary platform and trading tools.

“I believe it is important for shareholders to understand just how valuable our technology has become,” said Swanell.

“It has been one of the critical features of our company and it bodes well for the value and future of the Australian and Canadian business,” he added.

Fanatics Sportsbook’s Virginia launch marks just the latest expansion for one of the most serious challengers to enter the US online sports betting market.

Bettors in the state can now download the Fanatics Sportsbook app on both iOS and Android.

The launch follows on from Fanatics kick-off in West Virginia last week, which saw the business debut its integrated iGaming app.

Fanatics received its market access in the state from a partnership with the Colonial Downs Racetrack. The tethered licence was first awarded to PointsBet in November 2021.

The licence, following necessary regulatory approvals, transferred to Fanatics following the closing of the $225m acquisition of PointsBet’s US business in October.

Through the deal Fanatics gained market access to 14 states, with New York, Michigan, New Jersey, Arizona, Colorado, Illinois, Wyoming, Indiana, Iowa, Kansas, Pennsylvania and Louisiana still to open.

The PointsBet deal was nearly torpedoed in June when DraftKings announced it was making a $195m all-cash offer for the business, an increase on Fanatics’ original $150m bid.

However, DraftKings said it would no longer pursue the acquisition after Fanatics opted to raise its offer.

Former PointsBet users can migrate their accounts, including their account balance and responsible gaming settings, to the new platform.

US competition heats up in H2 2023

After a round of market exits this year, new entrants have made inroads into the US sports betting market in a sign that competition could be heating up.

Backed by sports apparel giant Fanatics and led by former FanDuel chief Matt King, the sportsbook has expressed in the past its intention attain a serious market share.

The other big new challenger to the scene is Penn Entertainment’s ESPN Bet, which is hoping to capitalise on the most popular sports media brand in the US.

UK-based bookmaker bet365 is also highlighted as a potential challenger. The operator this week launched in Louisiana and secured a sportsbook partnership with the Charlotte Hornets in North Carolina.

“Celebrated for its passionate culture and festive spirit, we are thrilled to bring bet365 to Louisiana,” said a bet365 spokesperson.

After kicking off retail operations three weeks ago, Kentucky’s online sports betting market has officially launched. 

Today (28 September) marks the first day when operators can offer mobile sports betting in the US state. 

Kentucky has already granted eight mobile sportsbook licences, with Fanatics, BetMGM, bet365, FanDuel, Caesars, Penn Entertainment and DraftKings set to go live on day one.

Circa Sports, the eight operator granted a Kentucky sports betting licence, is yet to launch.

Regulatory journey

Kentucky became the 37th state in the US to regulate sports betting just six months ago.

In March, Governor Andy Beshear signed the Kentucky sports betting bill into law, paving the way for the launch of up to 10 retail sportsbooks and a potential 30 mobile sports betting apps in the state. 

The oversight and regulation of these platforms will fall under the purview of the Kentucky Horse Racing Commission.

Retail sports betting launched in the state on 7 September. 

Online sports betting GGR will be taxed at 14.25%, while licence fees cost $500k in addition to a $50k annual renewal fee.

To launch a mobile app in Kentucky, sportsbook operators are required to establish partnerships with local horse racing tracks.

Revenue boost

Kentucky, home to over three million adults, shares borders with several states where sports betting is already legal.

A frequently cited reason for introducing sports betting was therefore to safeguard and retain tax revenue within the state.

According to Governor Andy Beshear’s office, the move is anticipated to result in an annual revenue boost of approximately $23m. 

The additional revenue will support sports wagering oversight and contribute to the Kentucky permanent pension fund.

“Kentucky has been one of the quickest states to launch sports betting after legislative approval, and the Bluegrass State is taking the right approach by keeping the barriers to entry low and allowing a variety of operators to enter the market,” said Gambling.com Group CEO Charles Gillespie.

“We believe that this will foster competition and ultimately benefit consumers as the operators with the best products rise to the top,” he added. 

Gambling.com Group launched its comparison site BetKentucky.com in April 2022, ahead of the legalisation of online sports betting in the state.

Initial interest

For the past month, Kentucky residents have had the opportunity to pre-register for mobile betting accounts with authorised operators. 

More than 60,000 mobile accounts in Kentucky have been registered with online sportsbooks during this time.

This summer, Kentucky sports betting authorities made a contentious decision to establish the legal sports betting age at 18, setting the state apart from the majority, which set the minimum age at 21.

However, most operators have opted to maintain the 21+ age requirement, restricting those aged 18 to 20 from participating. 

Only bet365 and DraftKings have chosen to allow 18-year-olds to place wagers.

“Kentucky marks the 24th jurisdiction overall where DraftKings is live, and we are thrilled to have the opportunity to deliver sports fans across Kentucky with our safe and legal mobile DraftKings Sportsbook app,” said DraftKings North America president Matt Kalish. 

“It’s an exciting time of year with the NFL and college football seasons currently underway, and we look forward to being the ultimate host, providing customers with a seamless and enjoyable sports betting experience.” 

Bonus promises

Kentucky’s entry into the sports betting arena is expected to spark a fierce battle of promotions among licensed sportsbook operators. 

“At the Fanatics Sportsbook, customers can bet on the sports they love and be rewarded with up to 5% back in FanCash on every wager they make, win or lose,” revealed Scot McClintic, CPO at Fanatics Betting and Gaming.

“We are launching in Kentucky with our signature jersey drop promotion where new customers can sign up and suit up with a fresh jersey from any team and any sport from Fanatics.com,” he added. 

Broader benefits

Mobile sports betting in Kentucky holds the promise of delivering broader benefits to the state.

“Kentucky has a rich history in sports and a passionate fan base,” said BetMGM CEO Adam Greenblatt. 

His company has joined forces with Revolutionary Racing Gaming and is set to launch a 5,200 square-foot retail BetMGM sportsbook at Sandy’s Racing & Gaming, a $75m gaming and entertainment facility scheduled to open this autumn.

Greenblatt added: “Revolutionary Racing is an ideal partner, enabling us to deliver an entertaining and responsible gaming experience while contributing to the state through job creation and tax revenue.”

The full list of approved mobile sportsbooks and their partners can be found here.

Genius Sports Limited (“Genius Sports”) (NYSE:GENI) has unveiled BetVision, the world’s first immersive sports wagering experience that brings live streams together with integrated bet slips, statistical insights, and real-time augmentations within a single interactive player. Genius Sports is launching BetVision with NFL live games in the U.S.

For the first time ever, BetVision will allow sportsbook customers to place wagers from within the live video player in the sportsbook app. These low latency live game video streams feature integrated betting odds and betslips and will be enhanced by in-game betting alerts and on-screen offers during breaks in game action to increase relevance, drive engagement and retain customers.

NFL content is available on mobile and tablet devices and will include live augmentations such as data-driven insights, graphic overlays and visualizations already in use with a range of broadcast and streaming partners across North America. BetVision is a uniquely personalized product that allows users to toggle on and off content and stats to create a tailored viewing experience based on their individual preferences.

In the initial launch, U.S. sports betting operators Caesars Sportsbook and Fanatics Sportsbook are the first to be live with the product. Each operator will stream nationally distributed and local, regionalized live NFL games each week. Over the course of the 2023 NFL season, additional features and functionality will be added.

Genius Sports is the NFL’s exclusive distributor of real-time, official play-by-play statistics, proprietary Next Gen Stats (“NGS”) data and the NFL’s official sports betting data feed to media companies and sports betting operators globally as well as low latency live game video streams.

“We’re very pleased to be Genius’ first BetVision content partner as they continue to be on the cutting edge of sports betting experiences,” said Brent Lawton, VP business development & strategic investments of the NFL. “BetVision allows us to create a differentiated way for fans to engage with NFL content.”

“BetVision is leading a new era of immersive sports experiences,” said Mark Locke, CEO of Genius Sports. “The launch brings together our capabilities across data tracking, video streaming, live data and sports wagering to create a game-changing product for sportsbooks.

“Sports fans and bettors alike increasingly demand personalized interaction, greater customization and deeper insights combined with an ability to strike a bet seamlessly. BetVision alone offers precisely that, while giving sportsbooks a new way to drive engagement and accelerate the growth of in-game betting.”

New Jersey regulators have hit PointsBet with a $25,000 fine for three separate violations of online sports betting laws.

One historic breach, relating to August 2021, saw the operator accept pre-match bets on games that had already begun. All five of these bets came from one customer, who wagered $13,500 to eventually win $28,275.

The New Jersey Division of Gaming Enforcement (NJDGE) said the bets were voided after the error had been identified and the customer’s initial stake was returned.

“PointsBet stated that the ‘overwhelming’ number of matches offered through PointsBet made it ‘unrealistic’ to check and verify each event and the market offered for wagering,” the NJDGE wrote in a document outlining the charges against the company.

The regulator revealed that PointsBet attributed the error to “an unresolved communication issue” between itself and a third-party data feed provider.

PointsBet also accepted bets in March 2022 on the St. Peter’s men’s basketball team, which was ineligible for wagering in New Jersey because the team is located within the state itself.

Despite this, the St. Peter’s market was live for almost an hour as two individuals placed bets totalling $60 before both were cancelled. PointsBet blamed human error for the mistake, according to the NJDGE.

Finally, in October 2021, PointsBet offered a market on a League of Legends esports competition. However, one of the players was under the legal betting age of 18.

The operator accepted four bets worth $1,225 on the tournament before voiding them. PointsBet has since added an age verification process for video game events, it said.

The $25,000 fine was originally imposed in August as part of a settlement, but details did not emerge until a request was made by the Associated Press, which broke the story.

PointsBet’s US business has since been acquired by Fanatics. The firm’s New Jersey sportsbook has now been rebranded to: “PointsBet, a Fanatics Experience”. 

Fanatics and PointsBet made a splash in the US online sports betting market during week one of the NFL season, according to the latest edition of the US Sports Betting Market Monitor from Eilers & Krejcik Gaming (EKG).

The report includes several key data points and analysis from the US sports betting market, including year-on-year growth of nationwide betting handle and GGR, as well as the number of app downloads attributable to each operator during the NFL’s opening weekend.

Below, iGaming NEXT sets out some of the key talking points from the September edition of the report, using data up to July 2023.

Fanatics storms onto the scene

This chart shows the number of app downloads attributable to each of the biggest US online sports betting brands during the opening weekend of this year’s NFL season.

It shows some interesting trends among major operators, such as DraftKings maintaining the lead for most app downloads, albeit following a significant drop compared to the same period last year.

FanDuel outperformed its prior-year performance, meanwhile, helping to close the gap between itself and DraftKings, although it still remained some way behind.

The performance of BetMGM and Caesars left something to be desired, as they both underperformed in terms of app downloads compared to the same period last year, while the number of customers downloading Penn’s Barstool Sportsbook app all but collapsed.

Bet365, Fanatics and its now-acquired PointsBet business were the only smaller brands to make significant gains in this area.

Fanatics Sportsbook stormed onto the scene with more than 50,000 app downloads (no comparative data is available), while PointsBet saw its number of downloads grow more than 200% year-on-year.

Both brands leant on Fanatics’ core business by offering merchandise-based special offers to customers, which according to EKG “seemed to resonate with US online sports betting players.”

Those offers – including a free sports jersey for new players betting $50 with PointsBet – helped the two brands together capture some 14% of overall app downloads over the weekend, an impressive feat in a market dominated by a handful of huge brands.

EKG already expects other operators to respond in kind to Fanatics’ promotions, with DraftKings thought to be likely to use its nascent merchandise unit to get in on the sports apparel promotion action.

As for how big a pinch of salt the above data should be taken with, EKG suggested that questions to be answered include what percentage of app downloads came from non-live sports betting states, and whether the Fanatics/PointsBet products are good enough to retain the new players they have acquired.

Nationwide betting handle

The above graphic shows the 31% year-on-year growth rate in online betting handle across the US, to $97bn over the trailing 12-month period.

It also breaks down which states the growth is coming from in broad strokes, by separating US markets into separate cohorts depending on when they went live with online sports betting.

The data shows clearly a rapidly diminishing growth rate in the most mature states, with those that went live in or before 2020 generating just 2% in year-on-year handle growth.

Still, those states managed to account for more than half of overall handle at $49.1bn.

States than went live in 2021 showed growth of 15% as bettors there wagered $17.2bn, while 2022 states saw much faster growth of 133% year-on-year, with handle of $23.5bn

Across the states that launched online sports betting this year, bettors have wagered $6.2bn so far.

A closer look at the numbers on a state-by-state basis shows negative handle growth across several individual states.

Handle in Nevada was down 13.2% year-on-year, for example, while it fell 9.1% in New Jersey and 8.8% in Iowa.

As for the fastest growing states, Oregon saw handle increase by 41%, Wyoming by 31.6% and Washington, DC by 30.6%.

Honourable mentions also go out to Louisiana, where handle jumped by 27.6% and Illinois, where it was up 22.4%.

Nationwide GGR

Looking again at the nationwide figures, growth in GGR was much more impressive than the 31% increase in handle.

Overall GGR leapt by 80% to $9.1bn, as each cohort of states saw decidedly faster growth on this metric.

States that launched online sports betting in or before 2020, for example, saw GGR jump 39% despite their modest 2% growth in handle.

For states that launched in 2021, GGR was up 40% to $1.7bn, while 2022 states saw revenue almost triple to $2.4bn.

States that launched in 2023 have generated $795m in GGR so far.

Looking again at a more detailed breakdown of each state, established markets like Nevada and New Jersey saw the most modest GGR growth rates at 21.2% and 24.4%, respectively.

Washington, DC, being home to under a million residents and boasting modest GGR of just $8.5m over the trailing 12 months, saw a growth rate of just 14.4%, but the small size of this market leaves it as something of an outlier when compared to other states.

Elsewhere, Oregon posted the most impressive growth rate in terms of GGR, which grew 83.6% to $65.8m.

Not far behind were Illinois, where GGR grew by 57.7%, Wyoming, where it was up 56.4%, and Connecticut, which showed GGR growth of 56%.

Tennessee and New Hampshire also saw GGR growth of over 50% year-on-year, while Iowa, Rhode Island and Virginia all boasted growth of over 40%.

EKG’s monthly report provides a digest of news and data points, including forecasts, for the emerging market for regulated sports betting in the United States. Please contact managing director Chris Krafcik for more information.

Fanatics Betting and Gaming has promised to provide new customers with a team jersey of their choice for signing up and placing a bet with the operator’s US sportsbook.

Fanatics is a leading provider of licensed sports merchandise and intends to leverage that advantage to acquire customers for its newly launched online gambling business.

Dubbed The Fanatics Jersey Drop, the promo applies to customers who sign up to the firm’s online sportsbook and mobile app between 1 September and 18 September.

Users will be able to place a single cash wager of $50 or more on any market to receive a reward credit to purchase team merchandise worth up to $150 on the flagship Fanatics site.

“Fanatics Betting and Gaming is bringing a more rewarding online sports betting experience to customers to celebrate the return of football season,” said Jason White, CMO of Fanatics Betting and Gaming.

“We want to outfit our customers in the latest team gear for betting with us on the Fanatics or PointsBet Sportsbooks. It’s sign up, suit up and get the Fanatics experience,” he added.

Last week marked a major turning point for Fanatics in the US sports betting space.

The company closed its acquisition of PointsBet’s US operating businesses across eight states.

The completed states – Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia – represent the first eight where Fanatics has received all the necessary regulatory approvals to complete the acquisitions.

In the states where the acquisitions have closed, PointsBet operations will be rebranded to “PointsBet, a Fanatics Experience”.

“We have a 10-year plan that focuses on the customer and not market share,” said Fanatics Betting and Gaming CEO Matt King.

“We are going to acquire customers efficiently, allowing us to return savings to customers by investing in the customer experience at Fanatics Sportsbook,” he added.

Last year, Fanatics faced a backlash on social media for offering bonus bets to customers who purchased sports merchandise via the online store.

The furore eventually led to Ohio state regulators stepping in to shut down the promotion.

Fanatics Betting and Gaming has closed on its acquisition of PointsBet’s US operating businesses across eight states.

The completed states – Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia – represent the first eight where Fanatics has received all the necessary regulatory approvals to complete the acquisitions.

Transactions are still to be completed in other states including Illinois, Indiana, Louisiana, Michigan, New York and Ohio.

PointsBet rebrand

In the states where the acquisitions have closed, PointsBet operations will be rebranded to “PointsBet, a Fanatics Experience”. 

Customers in Illinois and Indiana will also witness the rebrand in the coming months, Fanatics said, but PointsBet’s operating businesses in those states will continue to be operated by PointsBet USA until Fanatics closes its acquisitions there later this year.

Fanatics added that the acquisition complements the growth and diversification that its Betting and Gaming division has accomplished over the past two years.

In addition to its sports betting brand, platform and technology, Fanatics will also add PointsBet’s online casino platform to continue the development of its iGaming operations scheduled for launch later this year.

Further, PointsBet’s proprietary Banach technology – included as part of the acquisition – will be integrated into the Fanatics Sportsbook app currently available in Maryland, Massachusetts, Ohio and Tennessee.

New and current PointsBet customers will be able to “become part of the Fanatics family,” the business added, with new promotions planned for the upcoming American football season.

Management commentary

PointsBet USA will continue to employ engineers, customer service teams, traders, marketing and compliance teams with a new influx of operating capital from Fanatics Betting and Gaming, the company said. 

Meanwhile, Johnny Aitken will continue as the CEO of PointsBet USA.

“We are excited about what we are building at Fanatics Betting and Gaming and this acquisition accelerates our plans,” said Matt King, CEO of Fanatics Betting and Gaming. 

“We have a 10-year plan that focuses on the customer and not market share. 

“We are going to acquire customers efficiently, allowing us to return savings to customers by investing in the customer experience at Fanatics Sportsbook and PointsBet, a Fanatics Experience.” 

PointsBet’s remaining business

In its latest annual earnings report, PointsBet explained that it would continue to focus on its core Australian business, which generated A$211.7m in net win during the financial year 2023, as well as its Canadian business, which generated A$18.3m.

With the Canadian operations still far behind its Australian business, PointsBet CEO Sam Swannell said the company saw the regulated province of Ontario – as well as the possibility of other regulating provinces, such as Alberta – as its key growth drivers moving forwards.

Those comments came amid a 1.7% reduction in its Australian revenue in FY23, as a result of a tough comparative period which saw outsized earnings for online operators in Australia during the Covid-19 pandemic.

Despite the reduction in revenue, which took place across the Australian market, Swannell suggested that the business had in fact increased its market share in Australia during FY23.

Fanatics Betting and Gaming, the online and retail sports betting subsidiary of Fanatics Holdings, Inc., a global digital sports platform, has launched the Fanatics Sportsbook online in Maryland, Massachusetts, Ohio and Tennessee.

The Fanatics Sportsbook makes being a fan easy with fast signup, easy betting, transparent withdrawals, an industry-leading search functionality and a curated Discover page with the sports and bets that matter most to a customer.

Sports fans can find live scores, plus lines and odds for their favorite teams and athletes. Fanatics Sportsbook features everything from moneyline bets, to spread bets, over-unders, player props, live in-game betting markets, and the always popular Same Game Parlays (SGPs).

“After 6 months of beta testing, we are excited to officially launch the Fanatics Sportsbook product to the public,” said Scot McClintic, chief product officer, Fanatics Betting and Gaming.

“We are laser focused on solving pain points facing customers by offering a faster, easier, and a more rewarding sports betting experience. The strategic patience to build a product for the long-term has given us an opportunity to redefine a customer’s expectation of what a sportsbook should be.

“With the Fanatics Sportsbook product foundation built and wholly owned, customers should expect unparalleled speed of feature improvement, delivery, and innovation.”

Fanatics Betting and Gaming is poised to disrupt the sports betting industry by offering the following exciting new features.

New features

Building a better sportsbook: The Fanatics Sportsbook app was built natively on iOS and Android. The design, speed and quality of the navigation experience rivals the sports betting apps in the market today that were not built specifically for iOS and Android.

The most rewarding sportsbook: Earning FanCash is the first step to participation in the loyalty program for the Fanatics digital platform. Our vision is a programme that rewards fans with access to experiences that money can’t buy.

FanCash, the backbone of the Fanatics loyalty program, can be converted dollar-for-dollar into Bonus Bets and can also be used to purchase your favourite team merchandise at Fanatics.com.

A more personalised experience: The Fanatics Sportsbook Discover page has top picks for you including marquee games, trending bets, promos and rewards you want most. Customers will not have to scroll for long periods of time to place a bet on their favourite team or sport.

In the near future, the Discover page will be personalised to the customer’s favorite teams, sports and markets.

Transparent: Our Withdrawal Tracker shows you where your money is in the withdrawal process so you can relax and enjoy the game.

Search: The Fanatics Sportsbook will offer industry-leading search functionality to help customers find their bets faster. Search will include a search bar, recent searches, autocomplete, synonym/alias and deep linking to leagues, events and markets. 

A connected digital sports ecosystem: Fanatics Betting and Gaming is the first company to enter the sports betting market with the backing of a parent company that has been focused on the sports fan for years.

Fanatics is building a one-of-a-kind sports ecosystem where sports fans can go to one location and buy team merchandise, find collectibles and place a wager on their favorite teams.

With Fanatics Betting and Gaming’s recent acquisition of the US businesses of PointsBet and its proprietary Banach Technology, the Fanatics Sportsbook will integrate the best parts of the PointsBet tech platform to supercharge its sports betting engine. 

The Fanatics Sportsbook will also leverage PointsBet’s quantitative driven trading models from Banach Technology in its new state-of-the-art risk and trading platform. 

The Fanatics Sportsbook will offer legal sports betting markets on professional and college football, basketball, hockey and baseball, as well as golf, tennis, motorsports, boxing, MMA and much more.

The development and trading of sports betting markets will be done in house at Fanatics Betting and Gaming.

The Fanatics Sportsbook is making a profound commitment to the customer with a world class Help Center, chat experience and knowledgeable agents with 24/7 coverage. 

Customers will also have access to Responsible Gaming tools along with some new innovations that will be rolled out this fall so customers can analyse and manage their time, money and play patterns.

PointsBet has released its financial results for Q4 of its financial year 2023, the three months ended 30 June.

Topline numbers

Across all of PointsBet’s operations including Australia, Canada and the US, the operator generated net win of A$102.3m in Q4 FY23.

That represented a year-on-year improvement of 19.2%. 

Of the total net win, A$41.2m came from the group’s US operations (up 35.5%), which are set to be sold off to Fanatics in a previously announced deal worth $225m.

The remaining A$61.1m of net win came from PointsBet’s continuing operations in Australia and Canada, with Australia generating the lion’s share at A$55.6m, up slightly year-on-year by 0.7%.

The firm’s operations in Ontario’s regulated market generated a further A$5.5m, compared to just A$0.2m in the prior comparative period.

Looking to the full financial year 2023, those figures brought PointsBet’s total net win to A$391.1m, up 26.4%.

Of the full-year revenue, A$161.1m came from the US, up 71.6%, A$211.7m from Australia, down 1.7%, and A$18.3m from Canada, up from just A$0.2m for the financial year 2022.

News nugget

PointsBet suggested in the report that it could “do more with less” once it has unburdened itself from its US operations.

Final completion of the sale of its US assets to Fanatics is expected to take place in March 2024.

Following the sale of its US business, PointsBet said it expects the company’s EBITDA to come in close to breakeven from April 2024.

That will be helped by an associated reduction in costs, it said, across marketing, technology, corporate and staff expenses.

The firm’s global headcount will be reduced from around 650 full time employees as of 30 June to around 275 following final completion of the US operations sale next year.

Best quote

Best question

Rohan Sundram from MST Financal asked PointsBet management to provide some additional colour on the brand’s path to profitability in Canada.

Net win from the market was A$18.3m in FY23, while marketing expenses totalled C$26.4m (A$29.9m).

In response, CEO Sam Swanell said FY23 was the first in a three-year cycle of entering the regulated Canadian market.

“In the first year, you spend your marketing dollars, you start building your client base, and revenue starts coming in the door.

“From the guidance that we’ve given around FY24, we would expect that Australia would largely offset Canada’s losses in in FY24. 

“You’d expect that trajectory to continue and the losses to reduce, and then the guidance that we’ve given is that we think in Canada we’ll be EBITDA positive in FY25.”

Current trading and outlook 

In FY24, PointsBet said it expects net win growth of between 10% and 20% compared to FY23.

Total marketing expenses in FY24, meanwhile, are expected to be 15-20% lower than in FY23.

The business added that it expects the positive EBITDA of its Australian business to significantly offset the EBITDA losses of its operations in Canada in the financial year 2024, and that it then expects to deliver positive group EBITDA in FY25.