In a statement titled “Response to Media Speculation,” sports betting operator PointsBet has rejected claims of being involved in takeover discussions. The company refers to a recent news article published by The Australian and says it will “keep the market updated in accordance with its continuous disclosure obligations.”
A report from stock market news company MarketScreener also announced that the company could be subject to a takeover worth over AU$300 million, which equates to approximately US$197 million. The source referenced a suitor based in Asia, stating:
“The listed bookmaker is understood to have held talks in recent months with potential merger partners or companies looking to acquire it. Some of the talks are likely to have been informal.”
About PointsBet
Founded in 2015, PointsBet launched its U.S. operations in 2019, debuting in New Jersey following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018. The company later launched its PointsBet Sportsbook in Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Virginia, and West Virginia.
Earlier this year, Fanatics Betting & Gaming completed the acquisition of PointsBet’s U.S. business for $225 million after closing in on the final state, Illinois. The company first announced the agreement in May 2023, which includes the company’s sports betting, advance deposit wagering, and iGaming operations. Fanatics CEO Matt King commented on the acquisition earlier this year:
"In addition to our migration of PointsBet customers and technology to the Fanatics Sportsbook and Casino platform, we have also added an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business."
Following the acquisition, PointsBet reported its FY 2024 results, revealing a 16% increase in revenue to $267.1 million. The U.S. sale left PointsBet with $28.1 million in cash reserves, which it said it planned to invest in its Australian and Canadian businesses. Since early September, the company’s share value has risen by over 80%, reaching a market capitalization of approximately $290 million.
Focusing elsewhere
The company has since published its financial results for the first quarter of FY 2025, observing growth in its core markets of Australia and Canada.
PointsBet reported a 12% year-on-year increase in net win to AU$65.3m or US$42.9m, with its Canadian division recording a 62% increase.
Last year, PointsBet shared its predictions for the Ontario sports betting and casino market to grow significantly over the next five years.
The company continues to expand its operations in these countries, with PointsBet Canada CEO Scott Vanderwel recently discussing the possibility of the company entering the Alberta market.
PointsBet estimates that it will collect between AU$280 million and AU$290 million in revenue in FY 2025, driven by its operations outperforming the market in both Australia and Canada. If revenue reached AU$280 million, this would mark an increase of around 14.3% compared to the AU$245 million collected in FY 2024, which ended on June 30.
