PointsBet has retained the services of New York investment bank Moelis & Company as it explores the sale of its US business.
The Australian company launched an online sportsbook in New Jersey back in 2019, and it is now live in 14 states.
It stands out by offering two distinct types of sports wagering – traditional fixed-odds betting and PointsBetting, which is similar to going short or long on a stock.
PointsBet is currently the seventh largest online sportsbook in the country, after FanDuel, DraftKings, BetMGM, Caesars Sportsbook, BetRivers and Barstool. It has also launched an online casino in some states.
However, the business is not yet profitable – none of the leading US sportsbooks are turning a profit yet – and the group is now exploring a sale of its US arm.
The Australian Financial Review broke the news, and PointsBet refused to deny it. “We believe further industry consolidation is inevitable, and we’ll position PointsBet to take advantage of movement in the sector,” it said in a statement.
PointsBet is currently available in Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia and West Virginia.
It was poised to expand into Massachusetts earlier this year after gaining the necessary licenses, only to back out at the 11th hour, while it has also slashed its promotions.
The company has proprietary software, a differentiated product and operational expertise, which could make it an attractive takeover target.