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· Posted on
February 21, 2024

PointsBet goes on the Shaq-attack to own the US betting market but it's not quite a slam dunk... yet

The move over to the US has cost PointsBet a pretty penny, but it's not backing out from its strategy anytime soon.

What's the key learning?

  • The move over to the US has cost PointsBet a lot, having made a loss of over $267 million over the last financial year
  • Pointsbet is adamant that all the spending for the licensing costs, setup costs, and major marketing costs is needed
  • Goldman Sachs reckons the size of the US sports betting market will rise to $US39 billion by 2033

👉 Background: PointsBet is an Aussie betting company that was launched back in February 2017. While it originally made a play for the Aussie betting market, it ducked over to the US pretty shortly after.

👉 What happened: The move over to the US has cost PointsBet a pretty penny. In fact, over the last financial year, PointsBet made a loss of over $267 million.

👉 What else: But PointsBet is adamant that all this spending needs to be done in order to win in a new, significant market.

What's the key learning?

💡Legalising a previously deregulated industry is like drawing moths to a flame. And it's a pretty sizey market.

💡Goldman Sachs reckons the size of the US sports betting market will rise to $US39 billion by 2033. So it's no surprise that more than 40 betting companies have taken the bait to compete in the US market.

💡But it ain't cheap - you've got the licensing costs, the setup costs AND of course the major marketing costs (*cough* Shaq). So now PointsBet is hoping it can withstand the pressure.

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