PointsBet, an Australian-based sports betting company, has announced that it has partnered with New York-based investment bank, Morgan Stanley, to assist in the sale of its US sports betting business. The move comes as PointsBet looks to focus on its core Australian operations and expand into new markets.
The US sports betting market has seen significant growth in recent years, with more states legalizing sports betting and a growing number of companies entering the market. PointsBet was one of the early entrants into the US market, launching in New Jersey in 2019. However, the company has struggled to gain a significant foothold in the highly competitive market.
The partnership with Morgan Stanley is seen as a strategic move by PointsBet to maximize the value of its US sports betting business. Morgan Stanley is one of the leading investment banks in the world and has a strong track record in mergers and acquisitions. The bank will work with PointsBet to identify potential buyers for the business and negotiate a sale.
The decision to sell its US sports betting business comes as PointsBet looks to focus on its core Australian operations. The company has seen strong growth in its home market, with revenue increasing by 236% in the first half of the 2021 financial year. PointsBet is also looking to expand into new markets, including Canada and Latin America.
The sale of its US sports betting business will provide PointsBet with additional capital to invest in its core operations and new markets. The company has already announced plans to launch in Canada later this year, subject to regulatory approval.
The US sports betting market is expected to continue to grow in the coming years, with more states legalizing sports betting and a growing number of companies entering the market. However, the market is also becoming increasingly competitive, with established players such as DraftKings and FanDuel dominating the market.
The partnership with Morgan Stanley is a smart move by PointsBet to maximize the value of its US sports betting business and focus on its core operations. The sale will provide the company with additional capital to invest in new markets and continue its strong growth in Australia. It will be interesting to see who the potential buyers for the business are and what the final sale price will be.
