PointsBet Sportsbook reportedly hires investment bank to sell its U.S. operations

Australian-based sportsbook company PointsBet has hired an investment bank to help with the sale of its North American operations, according to a report from The Australian Financial Review.

PointsBet, which operates in 14 states and reportedly ranks as the seventh-largest sports betting operator in the U.S., has apparently struggled to carve out a large enough market share amid stiff competition to become profitable. As a result, the company reportedly appointed Moelis & Company to help accelerate its exit.

“We believe further industry consolidation is inevitable, and we’ll position PointsBet to take advantage of movement in the sector,” a PointsBet spokesperson told AFR.

PointsBet reportedly turned attention to selling its U.S. division after rejecting bids below asking price for its local Australian division. One of those reported bids came from Australian sportsbook Betr — not to be confused with the American microbetting company of the same name — though potential buyers of the U.S. operations are unclear.

What does seem clear is smaller sportsbook operators won’t be able to survive for long with FanDuel, DraftKings and BetMGM controlling most of the market. Whoever acquires PointsBet will likely be doing so in an attempt to compete with those three.