Pointsbet Committed To US Expansion Despite Second Year of Losses

Pointsbet Committed To US Expansion Despite Second Year of Losses

  • PointsBet is doubling down on its US expansion strategy and defending its marketing and sales expenditures. 
  • The bookmaker is committed to the market despite having recorded its second consecutive year of losses on Wednesday. 
  • The Melbourne-based online casino and sports betting company reported that its year-on-year losses increased by 42.6% to AUD 267.7 million ($183.7 million) for the fiscal year ending June 30, 2022.

 

Our Recommended US Sports Betting Site in 2021

Our Rating

  • Score a $250 Welcome Sports Bonus
  • The Best Lines, Props And Live Betting
  • Accepts Wide Range Of Payment Methods Including Bitcoin
  • Bet On Traditional Sports + Politics, Esports & Virtual Sports
bovada

PointsBet

Increasing Marketing Spend in United States 

The company’s stock price dropped more than 11% following the release of the report, which highlights PointsBet’s expensive US strategy. 

According to The Sydney Morning Herald, the group spent approximately AUD 240 million ($162.8 million) on sales and marketing, including AUD 162 million ($109.9 million) in the United States alone. 

The company views North America as the most important betting market due to its large population, sports infrastructure, and technological investment.

Sam Swanell, chief executive officer, informed investors that aggressive marketing and sales spending would not continue in 2023, but that it was “necessary” to become the seventh-largest operator in North America with a 3.7% market share. Currently, the company operates in eleven U.S. states and Ontario, Canada, up from seven in the previous year.

While group revenue increased by 52.3% to AUD 296.5 million ($208 million), the majority of the additional revenue from sports betting and iGaming was absorbed by higher sales and marketing expenses, particularly in the United States. In an effort to increase market share, PointsBet’s competitors have employed comparable spending strategies.

Developing Live In-Play Wagering Products 

Swanell also defended the company’s accomplishments in the United States to date, stating that PointsBet has the necessary partnerships and licenses in those states. 

The chief executive officer views PointsBet’s customized offerings for major North American sports such as the NFL, NBA, baseball, and hockey as a potential trump card. Swanell claims that no other company has developed live in-play wagering products for these sports as thoroughly as PointsBet.

According to the executive, PointsBet’s expansion in the United States will begin in New Jersey, where the company’s subsidiary is anticipated to turn a profit by the end of the year. 

In the interim, the bookmaker is expanding into new states, including a Thursday launch in the newly regulated Kansas market, where it has market access via the Kansas Crossing Casino in Pittsburg.

Swanell cited PointBet’s division for its home market of Australia as evidence that the company could be successful in a mature market. In this country, the trading business achieved 30% year-over-year net revenue growth and positive EBITDA for the third consecutive year. 

And with the racing season just around the corner, the brand will refocus on the sport, which generates the most revenue in Australia, by doing “some things.”

This week, PointsBet announced it will launch a betting newsletter as part of its US expansion. The newsletter will initially be distributed three times per week (Sunday, Monday, and Thursday) under the editorial direction of PointsBet senior editor Teddy Greenstein, with plans to eventually increase to five times per week. 

It could provide the company with a much-needed cheaper alternative to acquire and retain customers at a time when it must reduce expenditures.

Our Recommended US Sports Betting Site in 2021

Our Rating

  • Score a $250 Welcome Sports Bonus
  • The Best Lines, Props And Live Betting
  • Accepts Wide Range Of Payment Methods Including Bitcoin
  • Bet On Traditional Sports + Politics, Esports & Virtual Sports
bovada
Avatar

About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.