PointsBet expects further windfalls as rugby and footy restart
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With the closure of gambling venues globally, such as casinos and league clubs, PointsBet (ASX:PBH) has seen increased trade as punters have no option but to move online.
Between April 1 and May 25, PointsBet reported a “Net Win” of $18.2m. This figure spirals out to $67.2m, if the prior nine months are included.
Net Win is the dollar amount received from clients who placed losing bets less the dollar amount paid to clients who placed winning bets and promotional costs.
The company attributed its growing bank balance to product improvements and racing turnover growth outperforming its competitors.
Despite the suspension of professional sports leagues globally, the company has continued to offer horse racing odds.
But as the codes resume, the company expects a further windfall. The National Rugby League (NRL) will resume games tomorrow night, while the Australian Football League (AFL) will be back on the field in a fortnight.
“The recommencement of the NRL and AFL will see the breadth of PointsBet’s product offering expand in Australia, with clients being able to wager on both racing and major sports,” the company said.
The AFL will be particularly important because PointsBet has just won the right to be the exclusive wagering partner for Fox Footy during the 2020 season.
However the resumption of many professional sports leagues in the United States, the company’s key market, remains unclear.
The US is a key market for the company because of its size and because sports betting is progressively being legalised on a state by state basis.
PointsBet said the National Basketball Association (NBA) and Major League Baseball (MLB) were aiming to resume games in July.
One sport with a clear resumption date is the Professional Golfers’ Association of America (PGA), which is starting again in a fortnight. Additionally, the National Football League (NFL) currently anticipates being on schedule for a restart in mid-September.
PointsBet listed last June at $2 per share and now sits 175 per cent higher than that.
While its COVID-19 plunge was well above the market average, it has regained much lost ground in recent weeks.