A new $2.9m purchase
With the aim of expanding its US sports betting business, PointsBet has agreed to acquire Oregon-licensed online horse racing operator Premier Turf Club (PTC) for a fee of approximately $2.9m.
PointsBet’s US subsidiary announced it had entered into a binding agreement to purchase the company on Monday. The operator of Australian origin said the deal would bring “immediate value”, with the business benefiting from PTC’s industry expertise and customer-focused operations.
PointsBet to offer advance deposit horse race wagering in the US for the first time
The deal, which will allow PointsBet to offer advance deposit horse race wagering in the US for the first time, is still subject to customary completion conditions. PointsBet expects it to close later this month.
Entering a lucrative industry
Commenting on the acquisition, Johnny Aitken, PointsBet US CEO, said: “The combination of Premier Turf Club’s excellence in the space with PointsBet’s mature market Australian racing expertise favorably positions us as we prepare to enter the US horse racing market.”
PTC has operated in the market for more than 13 years through its BetPTC website. PointsBet said the acquisition will accelerate its expansion in the US, placing it in a position to take advantage of the growth of sports betting across the country.
a 24% decline in the number of races in 2020
As reported by the Market Herald, the US racing industry generates more than $12bn per year in turnover. Despite coronavirus causing a 24% decline in the number of races in 2020, handle remained relatively steady at nearly $11bn for the full year. A 29% increase in the average wagers per race helped to offset the lack of events.
PointsBet’s continued expansion
PointsBet first launched its sportsbook in New Jersey in January 2019, and has since entered five additional states, including most recently Michigan.
The company’s expansion strategy revolves heavily around agreements with professional sports organizations. Before launching in Colorado last year, for instance, PointsBet signed exclusive gaming partnerships with the NBA’s Denver Nuggets, the NLL’s Colorado Mammoth, the MLS’s Colorado Rapids, and the NHL’s Colorado Avalanche.
PointsBet recently made clear its desire for further US expansion by completing a $43m deal to purchase Banach Technology. The sportsbook operator said that acquiring the B2B betting algorithm platform developer would allow it to capture greater market share across its active states.