Australian-based sportsbook operator PointsBet is raising the stakes in the US sports betting market. It has recently announced the purchase of Banach Technology for $43 million.
The company will pay 55 percent of the purchase price in cash. The remaining 45 percent will be covered by issuing 1.75 million shares of PointsBet stock.
This acquisition is designed to increase its overall corporate footprint in a US market that is expanding at an accelerated pace. That market is currently dominated by three or four major players led by FanDuel and DraftKings.
PointsBet remains committed to joining that elite group and this latest move is viewed as a major step forward in reaching that goal.
Banach Technology is based in Ireland and it specializes in developing risk management and trading platforms. The company’s CEO Mark Hughes was formerly in charge of the quantitative analyst division for Flutter Entertainment.
More specifically, Banach has developed both traditional and in-game betting products. They support the four major US pro leagues (NFL, NBA, MLB, and NHL) as well as popular international soccer leagues. In-game betting is one of the fastest growing segments of the entire global sports betting industry.
A quote from an official PointsBet company press release stated:
The company’s current market footprint in the US includes Colorado, Illinois, Indiana, Iowa, Michigan, and New Jersey. PointsBet US operations are based in Denver.
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Industry estimates project that 50 percent of all sports bets globally are placed live during the actual games. The driving force behind this style of sports betting is European soccer. PointsBet estimates that in-game betting will capture 75 percent of that total over the next three years.
The main reason in-game betting is not as popular in the US is the speed of play in the biggest betting sports such as football, basketball and hockey. However, the overall popularity of betting on these sports after the games have gotten underway is on the rise.
Baseball offers a prime market for in-game wagers as does sports such as golf. Marketing the thrill of adding even more excitement to the action on the field, court or ice is the key to capturing the lion’s share of the US in-game betting handle.
With this acquisition, PointsBet will be in position to fully capitalize on its existing status as the official betting partner of the PGA Tour. The company also has a marketing partnership with the NHL and the University of Colorado.
PointsBet Managing Director and Group CEO Sam Swanell offered the following perspective on this unique business opportunity:
“As legislation to approve sports betting accelerates across the US, it has become clear that the in-play opportunity will be very significant, and those with the best depth and breadth of product will win.”
The company remains completely committed to expansion in the US sports betting market. Last year, PointsBet spent $500 million to form a strategic partnership with Comcast’s NBC Sports to become the network’s official betting partner.