PointsBet is hopeful to fuel US expansion through the acquisition of a betting platform company. Yesterday, the sports betting operator completed the $43-million purchase of the B2B software company Banach Technology that specializes in creating sports betting algorithms and platforms.
The Australian gambling operator is set to pay 55% cash for its newest US asset. It has revealed it will issue 1.75 million shares and $4 million will be paid as part of the funding of the transaction.
At the time when the acquisition deal was officially revealed, the CEO of PointsBet, Johnny Aitken, explained that the completion of the transaction is expected to unlock multiple benefits for the Australian gambling operator, including the enhancement of so-called in-play offerings.
Mr. Aitken further noted that in-play betting is expected to become the centerpiece of the newest trends in the industry, especially in the US.
According to his estimates, approximately 50% of bets are currently placed during the games, with the percentage expected to rise to as much as 75% within three years. This is exactly what has encouraged SportsBet to seek expansion in the US sports betting and in-play market. As revealed by Grand View Research, the size of the global online gambling market is expected to reach $127.3 billion by 2027, with the sports betting revenue in the US projected to reach $2.5 billion in 2021 and $8 billion by 2025.
Global Online Gambling Market Will Continue to Increase, Analysts Project
Under the newly-revealed transaction, the co-founders of Banach Technology are set to join PointsBet’s team. This also applies to the company’s CEO Mark Hughes, who will occupy the chief operating officer’s position at PointsBet.
As much as further expansion is concerned, PointsBet is relying on so-called in-play betting services that provide customers with the chance to place micro-bets during games. The Australian gambling operator is not the only one that is seeking to consolidate its presence in the sector, with other companies, such as FanDuel, also making investments in in-play technologies through partnership deals.
PointsBet’s CEO explained that after the liberalization of the market through the US Supreme Court’s decision to slash the industry-wide ban imposed by the Professional and Amateur Sports Protection Act of 1992 (PASPA), the US punters have been getting more accustomed to sports betting and have been seeking to get exciting customer experience through the best technology. According to Mr. Aitken, this could be an excellent opportunity for PointsBet to establish a more solid presence in the US, especially considering the fact it owns its own technology.
The beginning of 2021 saw the Australian gambling company reach an equity agreement with the National Hockey League (NHL), which provided stock of about $556,000 to the League. The operator also agreed on a similar deal with NBCUniversal, worth $500 million. As confirmed by a spokesperson of PointsBet, NBC has gotten the right to boost its stake to 25%.