Following the rapid going away of Fubo Sportsbook from the sports wagering space, industry observers are turn attending to smaller players that could be takeover targets and PointsBet (OTC:PBTHF) is resurfacing as a make that could be attractive to prospective buyers.
In his firm’s hebdomadal email update, RoundHill Investments co-founder Will Milton Snavely Hershey noted that on the heels of Fubo’s unceremonial departure from sports wagering, the ultra-competitive regulated US sports betting market place “is potential to see additional casualties.”
He didn’t bring up specific operators that could eventually thrust inwards the towel, but he did discuss the difficulties littler gaming outfits human face when it comes to lack of product differentiations and competing against deep-pocketed rivals such as FanDuel.
We are likely to ensure continued contrition inward the place amongst littler sportsbooks, including the possible for consolidation,” wrote Hershey. “Companies such as PointsBet, which has an in-house tech answer and creative functionality such as Points Betting, are likely to turn up to a greater extent attractive to possible acquirers than boilerplate sportsbooks.”
Australia-based PointsBet does get an avenue for separating itself from rivals. In increase to tradition frozen betting odds bets, the troupe offers a production known as PointsBetting, which allows bettors to win — and turn a loss — significantly more than expected based on various outcomes.
PointsBet Has Been Center of Takeover Rumors
PointsBet isn’t a stranger to consolidation rumors. Earlier this year, rumors swirled that Fanatics may have held talks with the Aussie company regarding a marriage.
In June, reports rise up that Rupert Murdoch’s News Corp and legendary Aussie bookmaker St. Matthew Tripp made a run on PointsBet’s Australian business, but the place rebuffed that overture without regular taking the adjure to the room of directors.
There are no more shortage of PointsBet shareholders that could in the end push for a sale, though it remains to follow seen if such a scenario testament arise. Barstool Sportsbook possessor Penn Entertainment (NASDAQ:PENN) took a 6% wager inwards the Aussie gaming society last-place year and in June, Susquehanna River International Group (SIG) proclaimed an investment inwards the gamin operator equivalent weight to 12.8% of its shares outstanding.
The manipulator is currently live in Ontario, Canada and 10 states, including lucrative New York. By the destruction of 2022, PointsBet is aiming to follow operating(a) in at to the lowest degree 19 North American states and provinces and aiming for 10% part inward those jurisdictions.
PointsBet Problems
Like so many of its larger rivals in the US, PointsBet isn’t yet profitable, but it’s unrecorded inward Ontario, Canada and 10 US states, including New York, which could be sources of allure for suitors.
On the other hand, a former employee inwards Sep told an Aussie media outlet that PointsBet’s US operations are sloppily managed and, inward his opinion, it’s unlikely the companionship testament of all time challenge FanDuel.
The ex-staffer also said the gaming company’s US building block is disbursal freely on partnerships with media companies and teams with minuscule evidence to paint a picture those expenditures are working inward the operator’s favor.
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