Potential Shutdown of PointsBet Canada Under Consideration
Breaking: Rumors Swirl Over PointsBet Canada Sale to Hard Rock Digital
Brace yourself, folks! The gaming world's buzzing with chatter about a potential sale of PointsBet Canada to Hard Rock Digital. But is it more hot air than hard facts?
The Whopping $225 Million Deal
An industry insider shared, "buying a customer database means zilch unless there's a license application in motion."
According to recent reports, Betr, which controls 20% of PointsBet's Australian operations, has stepped up its game by upping its buyout offer for the Australian online gambling operator. The end goal? To take control of PointsBet, a mouth-watering US $230 million offer [1].
However, PointsBet's management raised concerns to shareholders earlier this month about Betr's financial capability to close the deal. In response, they suggested MIXI's US $225 million bid instead [2].
The Alberta Question
Reports in the trade publications speak of US $77 million in financing from Betr, and an offer from Seminole Hard Rock Digital to buy PointsBet Canada for US $19 million [3]. Yet, when we reached out to PointsBet Canada, they stayed mum. We also checked with the Alcohol and Gaming Commission of Ontario, who confirmed there is no application for an iGaming license submitted by Hard Rock Digital [3].
Alberta, however, is said to be on the horizon with a new iGaming market set to launch in 2026. PointsBet Canada CEO Scott Vanderwel confirmed earlier that they are keen on expanding to this promising new market.
Betr's Australian Acquisition Attempts
PointsBet offloaded its US assets to Fanatics back in April 2024, but held onto the Canadian operation. PointsBet's market share in Ontario is unknown, though bet365 appears to take the lead in the licensed iGaming operators there, with a staggering 15% market share [4].
PointsBet reported an 18% increase in total net win in Canada during H1 FY25, both in sports betting and iGaming, racking up CA$16.5 million (approximately US$12.3 million) [4]. Total handle on sports betting for the first six months of FY2025 was CA$152.4 million (45% year-over-year increase) and on the iGaming side, it was CA$487.2 million (39% year-over-year increase) [4].
[1] Enrichment Data: This transaction is subject to various conditions, including due diligence, regulatory approvals, and approval by Hard Rock Digital's board of directors.[2] Enrichment Data: PointsBet's management outlined concerns to its shareholders earlier this month about Betr's ability to finance the deal.[3] Enrichment Data: A potential US $77 million in financing from Betr and an offer from Seminole Hard Rock Digital to buy PointsBet Canada for US $19 million have been reported.[4] Enrichment Data: PointsBet reported an 18% increase in total net win in Canada. Total handle on sports betting was CA$152.4 million, with a 45% year-over-year increase. On the iGaming side, it was CA$487.2 million, with a 39% year-over-year increase.
- The potential sale of PointsBet Canada to Hard Rock Digital, valued at a whopping $225 million, has been met with concerns from PointsBet's management about the financial capability of the buyer.
- Buying a customer database may mean nothing without a license application in motion, as industry insiders suggest.
- Betr, controlling 20% of PointsBet's Australian operations, has increased its buyout offer to take control of PointsBet, with a mouth-watering US $230 million offer.
- Seminole Hard Rock Digital reportedly offered US $19 million to buy PointsBet Canada, but there is no iGaming license application submitted by Hard Rock Digital with the Alcohol and Gaming Commission of Ontario.
- Alberta, set to launch a new iGaming market in 2026, is an appealing market for PointsBet Canada, according to its CEO Scott Vanderwel.
- PointsBet offloaded its US assets to Fanatics in April 2024 but held onto the Canadian operation, where Pointsbet Canada reported an 18% increase in total net win in H1 FY25.
- The gaming and technology landscape in Canada and Alberta, including sports betting and casino-and-gaming, continue to evolve, creating opportunities for operators to expand and grow their businesses.
