PointsBet considers its New York sports betting app as the crown jewel of its portfolio, the company said during its quarterly earnings call Thursday.
On the call, CEO Sammy Swanell and other PointsBet executives said New York brings greater revenue opportunities than the other eight states they currently operate in.
“New York is expected to be one of the largest markets in the United States, and we are very proud to be one of only nine licensed operators to gain access,” Swanell said. “This is in addition to our launch in Virginia last month and will be followed by our launch into Pennsylvania in February. These are obviously very substantial markets and allow PointsBet to leverage key NBC regional sports in each market.”
Growing Presence in the United States
Swanell and PointsBet U.S. CEO Johnny Aitken broke down the company’s performance during the latter half of 2021 and laid out a rosy picture for the year ahead, citing launches in New York and the Canadian province of Ontario as being key to the company’s revenue numbers in the first half of 2022.
Aitken told investors PointsBet’s blended online handle market share from sports betting in the seven states it launched in (Illinois, Michigan, Colorado, New Jersey, Indiana, Iowa, and West Virginia) was 4.2% in 2021, but the company’s ability to get in on the ground floor in New York should push their percentage in 2022.
Swanell cited PointsBet’s status as one of the few operators to have launched in New York, New Jersey, and Pennsylvania as a key differentiator in 2022, as the company is positioned to provide top-class sports betting services in all three markets, as well as online casinos in New Jersey and Pennsylvania.
Swanell said PointsBet’s recent sponsorship deal with SNY in New York, as well as NBC regional sports networks in Philadelphia and Washington, are key ways for the company to chip away at market share. Former New Orleans Saints quarterback Drew Brees, who is now an analyst for NBC’s Sunday Night Football, is a PointsBet brand ambassador.
“Following our New York launch earlier this week, we are now among an exclusive group of operators that will be live in New Jersey, Pennsylvania and New York,” Swanell said. “In New York we are again leveraging our NBC partnership through Sports Net NY, a part of the NBC Sports Group.
“SNY is the regional broadcast home of Major League Baseball's New York Mets, in addition to carrying supplemental coverage of the NFL's New York Jets. They offer PointsBet year-round multi-platform media and marketing opportunities.”
Improvements Allow PointsBet to Stand Out
Aitken believes PointsBet’s product improvements, which include the introduction of same-game parlays and other forms of in-game betting, allow the Australian operator to stand out in a crowded field.
Aitken expects the company’s launch in New York, in addition to upcoming markets like Pennsylvania, to bring about a surge in advertising costs and revenue opportunities.
Swanell told investors he foresees the operator turning a profit for the first time, thanks in large part to the surge in revenue from new states like New York.
“Obviously, going live in New York and being one of an exclusive group that will be live in New York, New Jersey and Pennsylvania will be helpful when we’re going live in Pennsylvania,” he said. “The continued growth of the iGaming product is going to be vitally important. But I think by the middle of next year, we think New Jersey is turning profitable.
“Sport came back post-COVID in the middle of 2020, sort of had to restart the business. And so, we think by the end of next financial year, we're turning profitable.”