PointsBet will retain its operations in Canada despite entering an agreement to sell its US arm to Fanatics.
Subject to PointsBet shareholder approval, Fanatics will acquire the Australian group’s US sports betting and igaming operations, Banach tech and a license to use the firm’s proprietary technology for $150m in cash.
A joint statement on Twitter read: “Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s US business.
“While there are still several steps in the process to complete the acquisition, both parties are confident in the outcome. Fanatics Betting and Gaming and PointsBet will provide further details of the proposed deal and timely updates in the coming weeks.”
Pertinently, though, a distinction has been made between PointsBet US and the rest of its North American operations, namely PointsBet Canada.
Reports had surfaced in mid-April regarding the potential sale of the firm’s US arm, but there was a degree of ambiguity when PointsBet published its quarterly report last month.
In a statement accompanying the results, PointsBet Managing Director and CEO Sam Swanell said that “the company is currently in discussion with multiple parties in respect of potential transactions that would involve part or all of our North American business”.
However, it appears that the sale is limited to just PointsBet US, and thus its Canadian division will remain as it seeks to build on some encouraging results of late, including 21% Q-o-Q revenue growth in Q3 2023, aided by igaming revenue of $3.23m (+24% QoQ).
The company also entered the Ontario market last year, which produced $6.1m in revenue during the second half of 2022.