Business has been good for PointsBet according to a recent presentation that outlined the company’s financial outlook for the first half of the 2023-24 fiscal year.
That included a record sports betting and online gaming net win with revenue of $15.9 million, up 138% from $6.7 million from the previous year. PointsBet is based in Australia, and despite leaving the U.S. market in 2023 after selling those assets to Fanatics, the company remains bullish on the Canadian market.
As part of the report, PointsBet also offered some insight on the growing Canadian iGaming market including the important regulated province of Ontario.
Inside the Numbers
The numbers point to the growing popularity of sports betting in the legal, regulated market. Total handle for the first half of the 2023-24 fiscal year grew to $118.9 million, an increase of 17% from $101.3 million for H1 of 2022-23, according to the report.
Gross win reached $10 million, a 96% jump from $5.1 million for the previous fiscal year. Total gross profit grew 149% to $8.4 million, up from $3.4 million. Sportsbook live, in-play handle proved to be a key driver and cash active clients were also up 86%. Other sports betting products also helped see many of the company’s gains.
“Improving sports gross win margins as a result of growth in parlays, and promotions efficiency
helped deliver record H1 net win,” the company noted.
Despite the numbers, PointsBet is still not profitable from the standpoint of earnings before interest, taxes, depreciation, and amortization, also known as EBITDA. However, that number is growing smaller. H1 saw a loss of $12 million, an improvement of 38% from the $19.4 million EBITDA loss in H1 2022-23.
The report noted that the company was “On path to achieve or be close to EBITDA breakeven in FY25.”
Partnership Could Help Grow Additional Revenue
PointsBet management also sees some additional offerings that should help company revenue even more. That includes a new partnership with Strive Gaming to diversify and add to the platform’s online gaming options.
The company announced the deal in January. Strive, based in Vancouver, British Columbia, can now add Ontario online casino operations and also plans on possibly moving into other provinces in the coming months as well.
“Positioned as PointsBet’s strategic casino partner, this collaboration is set to redefine the Canadian iGaming experience starting in early 2024,” Strive noted in announcing the partnership. “PointsBet will leverage Strive Gaming’s tech platform to seamlessly integrate diverse content providers and create a world-class online casino experience. From North American retail options to European content, users can expect an unparalleled gaming library.”
In the new financial report, PointsBet outlined some of what customers can expect with the new partnership including:
- Vastly increased game selection – up to three times what is currently offered.
- More “flexible and powerful” promotions capabilities.
- Progressive Jackpots and improved engagement tools.
PointsBet officials believe these aspects will benefit the company by offering more of a focus on iGaming rather than just sports bettors. Gamblers may have previously just been interested in the platform for sports, but the Strive addition now allows for “enhanced acquisition of casino-first customers.”
The company expects the launch to help in bringing higher gross win margins and improved retention and customer lifetime values.
Looking Ahead
The repost also offered a look at the Ontario online gaming market as a whole. As some insight on the size of the market, PointsBet notes that the province represents 38% of the entire Canadian population at about 14.6 million people. The market is expected to grow to a net gaming revenue of between $2.5 billion and $3 billion over the next five years.
PointsBet signaled some interest in possibly moving into the British Columbia and the Alberta markets as well. Alberta officials have begun studying the possibility of regulating its own iGaming market similar to what is now seen in Ontario.
Adding those markets would offer the company the opportunity to reach more than half of the Canadian population with Alberta accounting for 12% of the country’s people and 14% for British Columbia. Those provinces could give PointsBet the potential of a footprint to reach 64% of the population.
The Canadian market remains crowded but PointsBet appears to believe that the company is moving in the right direction and that significant gains can still be made in the coming years in the Ontario province.
