Australia-based sports betting operator PointsBet is seeking to raise about $400 million to fund its expansion in the United States. The company, which opened a Denver headquarters in August 2019.
According to a news release, the company is looking to consolidate and expand upon its strong position in the rapidly expanding U.S. sports betting and iGaming market.
The funds will be used to support North American marketing and client acquisition, technology and product development, U.S. market access and government licensing fees and continued investment in talent and scale of operations, reported the Motley Fool. PointsBet management also observed that the infusion will give it balance sheet flexibility.
PointsBet Managing Director and Group CEO, Sam Swanell, commented: “Since inception, PointsBet’s Board and management have been working to establish and consolidate the key building blocks that have put us in the strong position we are today to pursue the expansion of the North American sports betting and iGaming opportunity.
“Today, in addition to our profitable Australian business, we have live operations in six U.S. states, with iGaming live in two of these states. By December 2022, we plan to be live in at least 19 North American states or provinces. The North American sports betting and iGaming market could be a $54 billion revenue opportunity by 2033, and our strategy is to continue to invest to become a Top 5 player in this market, targeting a 10 percent market share in all key North American jurisdictions.”
Swanell said fresh capital “will position PointsBet to execute this strategy.”
Goldman Sachs and MST Financial have already shown their support for the investment. Fourth-quarter results showed turnover up 182 percent to AU$986.1 million and total net win up 81 percent, to AU60.8 million. The group’s U.S. turnover rose 956 percent during the quarter to AU$17.7 million, while down under it was up 63 percent, to AU494.8 million, with net win at AU43.1 million, up 33 percent.
