Pointsbet to stop North American operations

PointsBet intends to sell its operations in North America and has confirmed ongoing discussions with multiple undisclosed parties a statement by the company said. The Australian bookmaker is also considering selling its Australian business.

PointsBet attracted interest from potential buyers after falling out of favour with investors. The falling out led to a 90% drop in its share price from a mid-pandemic peak. The company has been a frequent target of short sellers and has hired Moelis to assist in engaging with potential buyers for its United States business.

Larger competitors have been monitoring the company for the past year. But PointsBet has shown lukewarm interest towards Betr, a News Corp-backed company that has expressed interest in acquiring it.

Following media reports about the potential acquisition by Betr in Australia on December 27, 2022, PointsBet addressed the speculation in its latest update, confirming that its Australian assets may be sold, but downplaying the possibility of Betr as a potential buyer.

The statement by the company read in part, “Consistent with commentary previously provided to our investors and the market more generally, PointsBet continues to engage in discussions regarding strategic transactions that offer the potential to add value for our shareholders.”

Other information from the statement showed that the company’s fortune was improving. PointsBet reported a gross win of AU$130.3 million ($85.82 million) and a net win of AU$91.2 million ($60.07 million) from sports betting, both of which were significantly higher than Q3 results from the previous financial year. Additionally, the company’s iGaming net win was AU$15.4 million ($10.14 million).

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