PointsBet said no deal to Rupert Murdoch and his News Corporation. The sportsbook declined an offer of AUD 220 million-plus (US$153 million) for its Australian division. According to the Sydney Morning Herald, the board turned down the offer two weeks ago.
The offer is in line with the News Corp.’s interest in sports betting, perhaps to offset the decline in media revenues. In that regard, News Corp. Australia owns Punters.com.au and Racenet; Matthew Tripp, who joined News Corp. in the bid, is known for Sportsbet and BetEasy.
Despite the denial, News Corp. hopes to debut an online wagering business later this year, with former BetEasy boss Andrew Menz as CEO. The proposal with PointsBet would have added heft to the new business.
The rejection doesn’t change the debut, according to Yogonet Gaming News. It may, however, impact the size of the customer numbers.
Agreements between broadcasters and bookmakers have become an increasingly regular practice in the U.S. sports betting market, with broadcasters willing to take an equity stake in betting outfits in exchange for sponsorship rights and brand promotion during live sports events. In fact, Murdoch’s Fox Corp. launched bookmaker FOX Bet in 2019, but with poor results so far.
PointsBet, which operates in 10 US states and Canada, has a strong balance sheet with AUD 475 million in cash and equivalents on its books to fund its growth plans.
PointsBet reported a 37 percent increase in Australian turnover to AUD 579.4 million. Betting revenues for this division jumped 140 percent in the financial year 2021.
