PointsBet scotches takeover rumours as share price doubles since September

PointsBet has taken the unusual step of issuing a public statement denying it is in discussions for a takeover which would be worth up to $300 million.

Reports in NewsCorp media last week linked the publicly listed wagering company with a takeover from an unnamed Asian-based company. The speculation drove PointsBet’s share price to 98 cents at the market close on Monday.

“Generally, PointsBet does not comment on rumour and speculation. However, the Company confirms it is not in the discussions as suggested in the article,” the statement said.

“The Company will keep the market updated in accordance with its continuous disclosure obligations under ASX Listing Rule 3.1.”

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The volume of trading in PointsBet shares exploded with more than $7.1 million worth changing hands on Monday, three times the daily average.

It comes after the value of the shares has more than doubled since the start of September, when they were 49 cents.

It is not the first time that PointsBet’s future has been the source of conjecture. PointsBet confirmed speculation linked Betr to an acquisition of the ASX-listed business in early 2023, but that agreement never materialised.

It has since undergone a strategic reset, exiting its American business to focus on the Australian and Canadian arms.

Earlier this year, Stake.com founders Ed Craven and Bijan Tehrani took their holding in the business above 5 per cent, prompting suggestions that the crypto-gambling billionaires could be set to make a play. However, they have sat on their investment since June.  

Sports betting/grand finals power PointsBet’s growth

PointsBet has reported that more than two-thirds of its active customers now prefer betting on sports over racing as it recorded growth in almost every key metric over the first quarter of the 2024/25 financial year.

The StraightBren O’Brien

In its most recent quarterly update last month, PointBet reported its overall wagering turnover in Australia was slightly down on the same period last year, but a range of other key metrics, including gross win and net win were showing growth.

PointsBet said it expects to be cash flow break-even in FY25 and finish the financial year with circa $28 million. Revenue guidance is $280 million-$290 million for FY25 and EBITDA between $11 million and $16 million.

Upping their stake – What’s behind Craven and Tehrani’s PointsBet push?

Is there a bigger plan behind Stake.com founders Ed Craven and Bijan Tehrani’s play for a greater interest in PointsBet or is it just part of a global trend of changing investment strategies in a wagering industry in flux, asks Bren O’Brien?

The StraightBren O’Brien

Headquartered in Melbourne, PointsBet is led by Group Chief Executive Sam Swanell, while its Australian business is helmed by former sports and racing executive CEO Andrew Catterall.