PointsBet is in preliminary talks to sell its Australian business to Betr, a newly formed gambling company. The sale of the Australian firm would let the company to focus all of its efforts on expanding in the United States, while the start-up would take over 232,000 of PointsBet’s Australian clients.
PointsBet confirmed to the ASX on Wednesday morning that it is contemplating selling its Australian unit to the News Corp-backed gambling provider. The statement said:
“PointsBet confirms that it is currently in discussions with owners and operators of Australian wagering operator Betr, regarding a potential transaction involving the sale of its Australian trading business and notes that any potential transaction will be assessed in the context of PointsBet’s global strategy and opportunities.”
If the talks are successful, Betr would acquire about 232,000 of PointsBet’s Australian clients, who earned more than $600 million in revenue in the third quarter of 2022. Furthermore, the sale of the Australian firm would allow PointsBet to focus entirely on its development in the American market, which presently covers 13 states.
Betr is a subsidiary of News Corporation, Tekkorp Capital of Las Vegas, and the ASX-listed BetMakers Technology Group, which supplies its technology. Betr would be able to use that technology to boost its expansion if ownership was transferred.
Pointsbet in Australia has a market share of around 5%; the company’s objective is to raise this to 10% by 2025. The corporation is present in the United States and Canada, accounting for 3.7 percent of the total revenue of $13 billion in the market.
According to the statement, there is no assurance that these conversations will end in an agreement.
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