PointsBet on Its Way Out of North America

PointsBet has confirmed that it is planning to sell its US and North American operations in general, as the Australian gaming operator has released a statement detailing the matter. The statement confirms that a potential sale is currently being discussed with numerous undisclosed parties.

PointsBet Confirms Intent to Sell North American Business

The company is also planning to sell its Australian business, with one of the possible buyers Betr, a News Corp-backed company, which has shown interest but has been received tepidly by PointsBet it seems.

Media outlets broke the story about the potential Betr buy-out in Australia on December 27, 2022, and the company has felt the need to put an end to the speculation in its latest update. To sum up, Australian assets may be sold, but Betr is an unlikely buyer.

To help flesh out the story, PointsBet has issued a full statement regarding its North American business first. The statement read:

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.

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The statement also explained that certain negotiations have been well advanced already, which means that the business is closer to a sale than previously expected. However, PointsBet stated that none of the discussions is actually going to necessarily result in a binding transaction.

Third Quarter Results Show Improvement in Sports Betting Net Wins

PointsBet will also continue to keep the market informed about relevant developments as per compliance with disclosure obligations. The company also used the statement to outline its results for the Financial Year 2023 and its third quarter ended on March 31, 2023.

The company remarked on several developments, including Q3 sports betting turnover and handle reaching AU1.44 billion ($950 million) during the quarter. The gross win margin for the three-month period was posted at 9%.

Gross win from sports betting stood at AU$130.3 million ($85.82 million). Net win from sports betting was posted at AU$91.2 million ($60.07 million). Both results were much better than the Q3 results in Financial Year 2022. Meanwhile, iGaming net win stood at AU$15.4 million ($10.14 million).

The company also confirmed that it had cut 12% of its workforce in North America, leading to approximate cost savings of AU$6 million ($3.95 million).”