PointsBet (OTC: PBTHF) has reportedly signed a cope with funding financial institution Moelis & Co to think about promoting its North American enterprise. This can be a signal that the corporate needs to concentrate on its extra worthwhile Australian operations.
Each arms of PointsBet have been the topic of long-running acquisition rumors. Nonetheless, operators are struggling to make cash within the extremely aggressive and costly US market. Consequently, its market share within the nation is small in comparison with rivals reminiscent of FanDuel, DraftKings, BetMGM and Caesars Sportsbook.
We consider additional consolidation within the trade is inevitable and can place PointBet to reap the benefits of developments on this sector,” mentioned a PointsBet spokesperson. Australian Monetary Evaluation.
With FanDuel, DraftKings and BetMGM controlling 85% of the US cell sports activities betting market this yr, it was broadly believed that consolidation can be a serious theme amongst smaller gamers reminiscent of PointBet. .
Why level betting is a sexy goal
Though unprofitable within the US and struggling to achieve a strong market share, there’s purpose to consider PointBet is a compelling acquisition goal.
First, the market worth of the whole firm is simply $242.36 million. Second, the operator is licensed in 14 states, together with the engaging Ohio market. Third, revenues are up and prices are down. Lastly, it is on a ton of money.
of Australian Monetary Evaluation reported that an unidentified personal fairness agency kicked its tires on PointBet this week, however the curiosity was described as lukewarm. The publication additionally talked about Bally’s (NYSE: BALY) as a possible suitor.On line casino operators face comparable challenges to PointBet. An unprofitable digital enterprise and a small share of the US sports activities betting market.
Bally’s has been some of the acquisitive corporations within the gaming trade in recent times. Nonetheless, some digital and sports activities betting-related purchases have confirmed unfortunate, so operators at the moment are specializing in reducing prices.
Can Penn Leisure Turn out to be a Participant?
Though not talked about by Australian Monetary Evaluation, Penn Leisure (NASDAQ: PENN) stands out as the title to observe regarding the PointBet acquisition. Penn’s Barstool Sportsbook additionally has a slight edge by way of market share within the US. If PointsBet is priced proper, Penn might financially strengthen his Barstool Sportsbook market share.
Even when one other suitor buys PointBet, Penn may gain advantage as a result of the native on line casino operator owns shares within the Australian firm.
Level bets can be found in Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia and West Virginia. That roster may very well be engaging to potential suitors, particularly these wishing to interrupt into established markets, in addition to up-and-comers in locations like Maryland and Ohio.
