Pointsbet may be looking to sell its profitable Australian business to double down on the US.
👉 Background: PointsBet is the Australian online gambling company that launched in February 2017. Over the past 5 years, it has become a top 5 online gambling company in Australia.
👉 What happened: But here's the thing: Pointsbet is more focused on growing in the US gambling market. That’s because the market is slowly but surely becoming deregulated across the country.
👉 What else: Now, Pointsbet has released its results for the past six months and it ain’t pretty
Their loss for the period was over $178 million. So now, it may be looking to sell its profitable Australian business to double down on the US - which could pocket them another $250m.
💡 In the words of a poker player, sometimes you just need to go “all in”. By trying to sell its Pointsbet Australia business, Pointsbet may give itself an extended runway to make its US business work ….financially.
💡 While the US is currently burning a whole through their half-yearly earnings, the opportunity in the US is already huge with over 330m people. But in the US, Pointsbet is competing against well-capitalised and aggressive casinos like Caesars Entertainment and MGM and online gambling behemoths like FanDuel and DraftKings.
💡 So Pointsbet needs to become more efficient with its acquisition costs and grow its revenue to become competitive in the US.
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