PointsBet confirms media speculation about Betr deal

PointsBet’s Board Disclosure Committee issued a statement to the Australian Stock Exchange confirming that the company is negotiating with NTD Pty Limited (NTD) over the potential sale of its local trading business to Betr, an up-and-coming company in the country.

The statement, dated December 28, was necessitated by media speculation and an earlier report by The Australian published on December 23, 2022, in which the publication said that there could be a potential transaction involving the sale of PointsBet’s Australian business.

PointsBet used the opportunity of the statement to explain that it is constantly reviewing new opportunities and options for its business. Part of these options are offered by third parties, the company said in the release. The company added that Betr’s offer was indeed on the table, but no binding agreements have been signed or considered.

Rather, the company will take a better look at its global operations and the potential synergies and performances that can be achieved through a deal of this nature, the company explained. PointsBet further promised to keep the market updated about any major development regarding this or other deals connected to the company.

Betr has been committed to the Australian market, part of which is owing to the company’s boss, Matthew Tripp, who has helped build other brands in the country. Tripp is the person responsible for both Sportsbet and BetEasy, which are popular and successful sportsbook operators in Australia.

Betr is also the result of a tri-lateral partnership between BetMakers Technology, Tekkorp Capital, and News Corp, which recently increased its stake in the company. Betr actually did discuss a potential move with PointsBet earlier in 2022, but chose to purchase TexBet in August, paying $10m for the local business.

At the time, it became clear that PointsBet had rejected the bid placed by Betr for the existing trading business in Australia. It’s not clear what the proposed amount had been, but sources suggested it was anything between $220m and $300m. This offer could have been now enhanced as Betr seems keen to secure dominance in the Australian market altogether.

PointsBet has demonstrated significant performance in the Australian market, driving more than $600m in revenue in the third quarter of the year, along with a customer base of 232,000 bettors. PointsBet is also determined to control 10% of the total sports betting market by 2025, making it a good pick for Betr which is keen to grow its presence across the country and seems to be wasting no time to accomplish this.

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