PointsBet reports strong growth in Ontario iGaming and sports betting

iGaming net win rose 53% and sports betting grew 78%

PointsBet has reported strong year-over-year growth in both online gaming and sports betting in Canada for Q3 2024.

In its Q3 2024 financial update published on April 23, the Australia-based gaming and betting provider showed that its iGaming operations in Ontario‘s regulated market fueled a 53% year-over-year growth in net win.

The company’s net win for online gaming totaled $4.9 million CAD. Since PointsBet’s operations in its home country of Australia consist entirely of sports betting, that sum all came from its Canadian operations in Ontario.

PointsBet’s sports betting net win total was lower, at $3.8 million, but the operator reported that represented a year-over-year Q3 growth of 78%. PointsBet attributed that surge to “improved trading margin and continued gains in promotions efficiency” and also noted that it saw a 12% increase from last quarter in the number of customers who have placed a cash bet in the 12 months preceding the end of the reporting period.

The operator’s total sports betting handle for Q3 was $63.1 million and its gross win was $5.9 million, up 39% and 64%, respectively.

The figures suggest that, while PointsBet continues to make some headway in the crowded Ontario sports betting market, its online casino and table games offerings continue to be a vital component of its business in Ontario.

PointsBet announces second capital return after completion of Fanatics deal

During the period covered by the results, PointsBet completed its integration with Strive Gaming.

Meanwhile, just days after the end of the Q3 reporting period, the last step of the sale of its U.S. arm to Fanatics Betting and Gaming was finalized at the start of April.

This week, PointsBet also announced its second capital return, one of two that had been confirmed at its annual general meeting back in August 2023 with the intention of delivering up to $408 million back to shareholders after the U.S. divesture.

This second capital return totals $113 million, which PointsBet said was based on trading conditions and the process of selling PointsBet US. Combining the second return, which will be paid on May 16, shareholders have received a combined $394 million back.

PointsBet also reported a decline in cost of sales for the quarter and sales and marketing costs for the quarter. Net cash flow was $1.8 million for Q3, which PointsBet said marks the first positive net cash flow in company history and called “another first and important milestone.”

The financial update came just days after it was revealed that the NHL Alumni Association, a marketing partner of PointsBet Canada, is suing the operator for breach of contract. The NHLAA alleges in a lawsuit that the gaming provider cut short a multi-year sponsorship agreement after the Ontario government changed its sports betting advertising rules last year to strictly limit the use of athletes.

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