PointsBet selling its US assets to Fanatics in June had nothing to do with profitability. During a Q2 2023 earnings call, PointsBet announced its performance in the US grew in both the online casino and sports betting sector.
With the impressive numbers released during the earnings call, Fanatics is inheriting a good product. Its current standing, along with Fanatics’ existing customer base, should give the company a strong start as a WV online sportsbook.
PointsBet releases Q2 2023 earnings report
This is the last earnings call PointsBet will provide for the US, before it hands over the reins to Fanatics. PointsBet reported impressive results before leaving the US gaming market.
The company recorded $102 million in revenue, up 19% year over year. Sports betting profit rose to $28.6 million, a 20% year-over-year increase, despite a handle decrease of 24%.
PointsBet’s online casino revenue spiked to $41.2 million, a 35% increase from last year.
While both verticals did well for PointsBet, shedding its US assets to Fanatics frees up additional costs for the company. It expects profit to increase between 10% and 20%, according to its latest earnings report.
What type of WV market share is Fanatics inheriting from PointsBet?
DraftKings, FanDuel and BetMGM are the clear market leaders in generating online casino revenue.
PointsBet is under the Hollywood Casino at Charles Town license with DraftKings Casino. Jason Robins, DraftKings CEO, announced during the Q1 2023 earnings call that his company became the No. 1 online casino operator in the country, generating 26% market share of gross gaming revenue (GGR).
The Charles Town license generated the second-highest revenue ($52.9 million) amount among WV online casinos in FY 2022/2023. The Greenbrier, which is partners with BetMGM and FanDuel, recorded $67.8 million in combined revenue.
West Virginia does not display revenue per individual operator, so it’s difficult to discern the exact number PointsBet is producing. Regardless of what it is, PointsBet has a nice little niche in the Mountain State.
WV also reports sports betting figures by license holder, and not operator. For the FY 2022/2023, the Charles Town license of DraftKings and PointsBet amassed the most handle ($244.8 million), but the second-most revenue ($21 million). The Greenbrier license consisted of $215.3 million in handle and $26.9 million in revenue.
What is Fanatics’ potential in West Virginia?
Judging by PointsBet’s earnings call, the company has a good product, though it’s difficult to see the exact performance in West Virginia.
After the deal went through in June, Fanatics also acquired Banach Technology, which is a coveted platform that has helped PointsBet’s in-play offerings.
While PointsBet doesn’t have the name recognition of DraftKings, FanDuel and BetMGM, Fanatics does, albeit in a different industry.
Fanatics’ valuation is $31 billion and it already has a customer base of 95 million people. It’ll be interesting to see the pull Fanatics has. There has never been a company of this magnitude to enter the gaming space.
In a presentation to investors, PointsBet and Fanatics are ready for the change:
“Both organizations are very excited about what a combination of the Fanatics brand, database and team together with PointsBet’s technology, market access, and team can achieve in the US gaming market.”