PointsBet, the renowned sports betting and iGaming firm, has released its Q1 financial report for the 2024 fiscal year, covering the trading period ending on Sept. 30. The report discloses a slight decline in the company’s turnover.
During this quarter, PointsBet reported a total sports betting handle of $387.5 million. This figure represents a 3% decrease compared to the same period in the 2023 fiscal year. Notably, this report marks the company’s first financial statement since its recent US acquisition by Fanatics, a deal valued at approximately $225 million, almost double Fanatics’ initial offer.
The sportswear retailer’s sports betting division, Fanatics Betting and Gaming, initially offered $150 million to acquire PointsBet’s US assets back in May 2023. In June, DraftKings entered the race for control of the sports betting company but withdrew when Fanatics made a substantially larger offer, indicating their strong interest.
This enhanced proposal was met with approval from 98% of shareholders, leading to the sale of PointsBet’s US division. The company’s struggle to expand and compete effectively in the premium US sports betting market facilitated this decision.
Fanatics successfully closed on the first eight states in September. These states include Colorado, New Jersey, Pennsylvania, Iowa, Kansas, Maryland, Virginia, and West Virginia. Additionally, in early October, the company finalized deals in two more states, New York and Wyoming, and is left with four outstanding states.
PointsBet Canada Turnover Rises but Australia Drops
In its recently released Q1 FY24 financial report, PointsBet disclosed significant shifts in its Canadian and Australian divisions. The Canadian sector reported a substantial 111.4% rise in turnover, amounting to $44.2 million. On the other hand, the Australian division experienced a decline, with turnover totaling $566.9 million, marking a 7.3% decrease.
PointsBet also highlighted a notable increase of 14.7% in net wins attributed to sports betting, generating $55.1 million. Of this amount, the Australian sector contributed $52.8 million, registering 11.1% growth.
Meanwhile, the Canadian division contributed the remaining $2.3 million, marking a remarkable increase of 440%. The company’s iGaming sector also experienced good growth, amassing 130.7%, which resulted in a total of $3 million in revenue.
Sam Swanell, Chief Executive Officer of PointsBet, expressed his thoughts regarding the growth of the company’s Canadian division and its prospects.
“In FY25, we want Canada profitable. The Canadian business provides shareholders continued exposure to the fast-growing North American market through a jurisdiction that is more attractive than most US states,” he said.
Additionally, he disclosed that the company was actively seeking to enhance its casino offerings, emphasizing their significance to the company’s overall success.
“[We] are also actively working to significantly enhance our casino product offering in order to improve the overall experience for customers in terms of games offerings, bonusing options, which are both key elements to growing market share in Ontario,” he added.
Regarding PointsBet’s Australian operations, Swanell expressed optimism about the company’s potential to secure a significant market share in the near future.
“It’s a $5bn online market here in Australia. We’ve got plenty of room to grow into. We think the market as a whole will have some modest growth this year,” he said.