PointsBet has announced the acquisition of B2B software business Banach for $43 million on Monday. The sportsbook will seek to enhance its in-play products.
PointsBet Buys Out Banach to Boost In-Play Market Solutions
Australian sportsbook PointsBet will pursue further growth in the United States by acquiring Banach Technology, a software company specializing in in-play markets, for $43 million, the sportsbook announced on Monday.
Banach provides B2B software solutions and allows customers to build sportsbooks and betting platforms from scratch, enhancing the experience that focuses on live markets. PointsBet will cover 55% of the transaction in cash and issue another 1.75 million shares, with another $4 million committed to converting the two firms.
Speaking to media outlets on Monday, PointsBet CEO Johnny Aitken touted the potential synergies that would be achieved as a result of the acquisition, and specifically in the in-play markets. He is confident that live betting will play a growing part in the experience in the coming years.
Aitken didn’t hesitate to describe Banach founders as “modern thinkers.” Meanwhile, Banach CEO Mark Hughes will step in as a chief operating officer at PointsBet.
PointsBet chief executive is also wary of the future, arguing that what has worked in the past won’t necessarily work in the future, prompting everyone to seek new solutions. Aitken went even further, outlining what sports betting operators can expect in the years to come.
In-Play Markets Are the Future of US Betting
Even now, Aitken argues, an estimated 50% of all wagers are placed on live markets. Three years from now, though, this number should have gone up to 75%, the chief executive predicts.
Should the future of sports betting in the United States pan out to be focused on in-play markets, PointsBet is making an important acquisition that would help it stay its hand in this highly-profitable market.
The United States is growing all the time, with sports betting revenue forecast on hitting an all-time high of $8 billion by 2025. PointsBet brings a few exceptional wagering opportunities of its own, named after the company. Now, though, the company wants to consolidate its presence in the live betting market.
Aitken expects the interest in in-play markets to surge around the same time more people in the United States get the ropes of betting in the first place so they can make informed choices and try more challenging scenarios. Punters will grow curious and try to find the best technological platforms that offer them a better level of in-play experiences, too, Aitken explained.
This, he argued, is a job for PointsBet. PointsBet has been working continuously to establish more ties with media and sports leagues in the country. The sportsbook signed a deal with NBCUniversal worth $500 million, and NBC may seek to increase its stake in PointsBet to 25%.
Aitken has added that a further element to the success of sports betting would be how well in-play solutions and data feeds are integrated with live broadcasts, something the company can achieve now that it partners closer with NBC.
PointsBet is far from the only company that is looking to up its in-play betting game. FanDuel, a competitor, acquired Simplebet, a tech company, to boost its own live betting prowess.