Zona de Azar USA – Insider Perspective on Potential $500 Million PointsBet Sale

USA.- April 25nd 2023 www.zonadeazar.com When New York launched sports betting in February of 2022, the entire business swarmed, jockeying for position in an attempt to gain access to the biggest market in the United States.

Since then, sportsbooks have complained about the unrealistically high tax rate and the need to fix the market for its long-term success.

Add on top of that the tech bubble – which hasn’t quite burst – but certainly had a mini pop when Silicon Valley Bank ceased operations, and billions of dollars were missing.

That crunch has forced sportsbooks – who are still in their growing phases – to get out of debt and into the black as quickly as possible.

PointsBet Sportsbook has made its plans known – they will be sold.

The company hired investment bank Moelis & Co. to help accelerate its exit from the North American sports betting scene.

But to who and for how much remains the question.

Will a bigger fish gobble up a smaller fish, leading to a chain reaction of mass consolidation that leaves us with a handful of major players?

Smaller companies are getting squeezed, and uncertain waters lurk beneath the surface of how the market should grow to maturity.

PointsBet will be sold, but to whom and for how much?
The seventh-largest sportsbook is now up for grabs – and there is a market.

“PointsBet represents an attractive opportunity to acquire a proven operational team, a proprietary technology stack, existing market share and user base,” Chris Grove, a partner at Acies Investments, told The Post.

Their company also offers a New York sports betting license, which most companies can’t match and was quite costly.

“Market access across several supply-constrained states like New York and Michigan,” Grove said. “The more of those boxes a potential acquirer needs to check, the more valuable PointsBet becomes.”

Potential candidates for a sale are tough to sort through.

An argument could’ve been made for the Michael Rubin-backed Fanatics Sportsbook.

But that seems unlikely given the slow progress to building their product, and they recently purchased source code from Amelco, putting them out of the running.

Depending on the price, some have postulated that Bally’s could be in the market.

And of course, DraftKings will listen as they have been the most active in buying up competitors.

As for the worth, WynnBet, which does have Michigan and New York access, wanted $500 million for their online sports betting business, The Post exclusively reported in 2022.

They did not end up selling, and it’s unknown if anyone met that price, but PointsBet has all proprietary technology and parlay-rich systems.

North of WynnBet’s half-a-billion dollar asking price is likely the best launching point for PointsBet.

FanDuel will gain more market share in 2023
The sports betting giant, FanDuel has battled DraftKings for supremacy among all of the sports betting apps.

And they are in the lead, with DraftKings settling in with the second-place consolation prize.

“Even though many believe the brand has hit a ceiling, the unique dynamics of the U.S. market and the compounding benefits of FanDuel’s scale offer an opportunity for the operator to continue to grab share – a goal they may be especially motivated to pursue given Flutter’s plans for a public listing in the U.S,” Grove said.

Edited by: @MaiaDigital www.zonadeazar.com