PointsBet Q3 revenue up 716% year on year as Super Bowl acquisitions soar

PointsBet reported US net win revenue growth of 716% to A$26.7m ($20.6m) in its fiscal Q3 as active clients jumped from 22,716 to 127,470 between March 2020 and March 2021.

In the three months to March 31, New Jersey accounted for 22% of the ASX-listed operator’s overall handle during the quarter, while Illinois made up 18% and Indiana 5%.

The firm’s estimated market share by betting handle in New Jersey during the period was 6.9%, rising to 7.5% in Illinois.

PointsBet group CEO Sam Swanell put the significant 461% YOY growth in active customers down to an increase in marketing spend to $33.3m for the quarter.

During February’s Super Bowl, the operator recorded four times the handle and 12 times the number of FTDs compared to last year’s event.

PointsBet expects to launch its igaming product in Michigan imminently, with New Jersey to follow.

Swanell told analysts during the earnings report that he expected the introduction of igaming to increase PointsBet’s overall revenue margin in the US.

“We’re very much looking forward to launching that product in Michigan and New Jersey because a lot of the revenue that’s being reported out of the US at the moment is igaming and we’ve sort of had one arm tied behind our back,” he said.

Swanell said he was “comfortable” with CPAs under $500 that the operator has experienced in new states.

“Given our brand is very much in the early stages of growing and being recognized, I think that speaks to our excellence in execution that we are having CPAs below $500,” he said.

He estimated that other top-tier operators were spending an average of $500 to acquire users not tied to their brick-and-mortar casino or DFS databases.

The operator expects to launch in Pennsylvania in the first half of next year and is also eyeing Virginia, New York, Maryland, and a number of other states to enter in the next couple of years.