PointsBet (OTC: PBTHF) reportedly engaged investment bank Moelis & Co. to explore a sale of its North American operations. It’s a sign the company wants to focus on its more profitable Australian business.
Both PointsBet arms have been the subject of long-running takeover rumors. But the operator has struggled to attain profitability in the fiercely competitive and expensive US market. As a result, its market share in this country is paltry compared to rivals such as FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.
We believe further industry consolidation is inevitable, and we’ll position PointsBet to take advantage of movement in the sector,” a PointsBet spokesman told The Australian Financial Review.
Entering this year, it was widely believed that by virtue of FanDuel, DraftKings, and BetMGM controlling 85% of the US mobile sports betting market, consolidation would be a primary theme among smaller players, such as PointsBet.
Both PointsBet arms have been the subject of long-running takeover rumors. But the operator has struggled to attain profitability in the fiercely competitive and expensive US market. As a result, its market share in this country is paltry compared to rivals such as FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.
We believe further industry consolidation is inevitable, and we’ll position PointsBet to take advantage of movement in the sector,” a PointsBet spokesman told The Australian Financial Review.
Entering this year, it was widely believed that by virtue of FanDuel, DraftKings, and BetMGM controlling 85% of the US mobile sports betting market, consolidation would be a primary theme among smaller players, such as PointsBet.