PointsBet, an Australian-based sports betting company, recently announced the sale of its US sports betting business to a company called Twin River Worldwide Holdings. This move comes as PointsBet looks to focus on its core Australian market and expand its operations in other parts of the world.
The sale of the US sports betting business is expected to be completed by the end of 2021, pending regulatory approval. The deal is worth $43 million, with $25 million paid upfront and the remaining $18 million to be paid over the next two years.
PointsBet entered the US market in 2019, launching its sports betting platform in New Jersey. Since then, the company has expanded to other states, including Colorado, Illinois, Indiana, Iowa, and Michigan. However, despite its success in the US market, PointsBet has decided to sell its US sports betting business to focus on other opportunities.
According to PointsBet CEO Sam Swanell, the sale of the US sports betting business will allow the company to “focus on our core Australian operations and pursue new opportunities in other parts of the world.” Swanell also noted that PointsBet will continue to provide its technology and services to Twin River Worldwide Holdings as part of the deal.
Twin River Worldwide Holdings is a Rhode Island-based gaming company that operates casinos and racetracks in several states. The acquisition of PointsBet’s US sports betting business will allow Twin River to expand its online sports betting offerings and increase its market share in the rapidly growing US sports betting industry.
The US sports betting market has seen significant growth in recent years, with more states legalizing sports betting and more companies entering the market. According to a report from Grand View Research, the US sports betting market is expected to reach $15.8 billion by 2025, up from $2.9 billion in 2020.
The sale of PointsBet’s US sports betting business is just one example of the consolidation and restructuring that is taking place in the US sports betting industry. As competition increases and companies look to expand their market share, we can expect to see more mergers, acquisitions, and strategic partnerships in the coming years.
Overall, the sale of PointsBet’s US sports betting business is a significant move for the company and the US sports betting industry as a whole. It will allow PointsBet to focus on its core Australian market and pursue new opportunities in other parts of the world, while also providing Twin River with a valuable asset to expand its online sports betting offerings.
