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PointsBet has launched a fundraising campaign in a bid to drum up $84 million to continue their growth in the US sports betting market. This was disclosed after a PointsBet shareholder presentation in late October.
The company has enjoyed solid growth in New Jersey and other US gambling markets and is now looking for new investors to continue that growth. PointsBet wants to increase in-house technology development in order to get a bigger foothold in North America, but that means raising enough capital to cover licensing fees in regulated jurisdictions.
PointsBet CEO Sam Swanell and CFO Andrew Mellor recently held a conference call where details were given about the future of the company. The new shares for the company will be issued and then closed by November 22.
PointsBet has already invested a lot of money in trying to expand their brand and this included the company going public. Early in 2019 they had a public offering and there were 37.5 million shares issued at $2 apiece.
In a press conference detailing the public offering, Swanell stated, “Similar to the way we allow fans to take part in sporting events, our public offering allows fans to take part in us, as a company and as a platform. The global public offering comes at a time of rapid growth for the company and industry at-large and we are eager to utilize this momentum to continue to make sports betting an exciting and rewarding experience for all our customers.”
There was a whopping 223% increase in PointsBet players in the United States and Australia, where the company was founded, from September 30, 2018 to September 30, 2019. There was also a 166% increase in the active user base.
PointsBet launched in New Jersey in January this year, partnering up with The Meadowlands and Tioga Downs. The company has over 37,000 registered users in the USA and over 15,000 are active players.
In the last eight months the PointsBet sportsbook has expanded into nine other states that have legalized sports betting. They have made various partnership agreements with casino operators and gaming firms, including a deal with Penn National that allows them access to players in Indiana and West Virginia. It will also give them access to players from Ohio, Missouri, and Louisiana when sports betting becomes legal in those states.
PointsBet also has access to players from Iowa, Illinois, New York, and Colorado. There are plans in the works for a PointsBet Iowa and Illinois sportsbook. There could be future launches of their sportsbook in New York, where mobile sports betting is still on the table, and in Colorado, where it is assumed sports betting will be made legal when residents vote on the referendum.