PointsBet Looking to Sell US Business

With rumors swirling about PointsBet over the past year, especially with reports they were initial talks about selling to Fanatics last year, let's clear things up. Yes, PointsBet is actively looking to sell the American part of their business. 

This comes after PointsBet failed to finish the sale of the Australian part of their company at the end of 2022. Now that no sale is imminent for their Australian division, PointsBet wants to sell its US-based business. 

This was confirmed when PointsBet hired an investment bank to explore a possible US sale. Moelis & Co is the firm hired by PointsBet, according to the Australian Financial Review.

Reasoning Behind Selling

It is multi-faceted why PointsBet is looking to sell its American business.

• Delays and frustrations around states legalizing sports betting.
• PointsBet has yet to break into America's top five handles of sportsbooks.
• PointsBet feels the market is overcrowded.

Of course, there is likely many more reasons why a PointsBet is looking to sell. For one, the potential sale reports have helped their Australian stock price go up. Also, after a strong end to 2022 with record high net revenue in Q4 PointsBet may be trying to capitalize on their current value that may not last.

It is also worth mentioning looking to sell and selling. We have seen this with PointsBet having potential sales in the past, like with Fanatics last year and their Australian division most recently. Neither time did a sale happen, but in the meantime, it brings PointsBet into the mainstream news.

Potential PointsBet Sportsbook Buyers

This is where things get murky, as the big dogs like FanDuel or DraftKings have no reason to acquire PointsBet. While they could afford it, there is no direct path to how it would help their current business ventures.

Fanatics who are breaking into the market and could make sense are unlikely after they started working with Amelco. Penn Entertainments acquired theScore in 2021, so they are not a player. This sale would make a lot more sense if it was a few years ago.

Someone like Bally's could make sense, but after purchasing BetWorks for over $100 million and now breaking ties, they could use a tech provider. Yet are they interested, and do they have the capital for another nine-figure deal?

Final Thoughts and a Prediction

All of this will come to light in the months to come, but for now, PointsBet will continue to operate its American sportsbook as normal. As for a prediction, do not expect a sale anytime soon or even at all. PointsBet history points towards a sale being unlikely.