PointsBet CEO Sam Swannell revealed the company’s 2020 H2 results this week and spoke of his belief that New York will be a multi-operator market
PointsBet’s 2020 H2 results showed a 345% increase in US betting handle Year-on-Year in the six months to December 31 and much of that has been attributed to new state openings over the period.
PointsBet is an Australian company but their expansion into the US market has been a rapid one, with the New Jersey app followed in 2020 by offerings in Indiana, Colorado, Iowa, Illinois and Michigan.
This brand has a 10.8% market share in New Jersey, 8.9% in Illinois and 3.8% in Indiana. The other states are in their infancy and CEO Sam Swannell spoke of the problem of competing with the likes of DraftKings and FanDuel, who have DFS products across America and BetMGM, who have a database of bricks and mortar casino gamblers, when discussing the 1.4% initial market share in Michigan.
“They can light up their databases,” Swannell said. “Whereas we have to start slow and build as we don’t have that advantage. Even though the number looks small at 1.4%, you have to acknowledge that once they work through those players, then the playing field levels up.”
It would potentially be an even tougher market in New York, with Governor Andrew Cuomo having various different models and market access being a key concern for all operators. Swannell looked to address this though, adding:
“When the governor came out and talked about a single operator model, that was a surprise to the industry,
“But that’s allowed the industry to address that approach versus the preferred approach. Current legislation does allow three skins and we are confident it’s heading in the right direction.”