PointsBet has its eyes on Ohio and a new finance team with deep pockets.
Susquehanna, the international investment company, purchased 12.76% of PointsBet, making it the largest shareholder of the gambling operator.
PointsBet will issue 38,750,000 million shares to the group at $1.70 (American) each for a total investment of $67.87 million.
Those shares will be issued by PointsBet by the end of the week, but PointsBet will not have to make any changes to its current leadership team. Both companies have already begun sharing information and resources.
PointsBet was one of the first two sports betting license applicants, along with BetMGM, to be a Mobile Management Service Provider in Ohio on Friday – the first day of open applications.
Follow the money to Ohio
Having the resources of Susquehanna through its affiliate group SIG Sports gives PointsBet the capital to pursue a bigger market share in the US.
“We are delighted to pair up with a visionary investor which has committee ongoing support and is eminently qualified in analytical trading in financial markets, and now in sports,” said Brett Paton, PointsBet chairman, in a statement announcing the news.
“The cultural alignment between both organizations is strong, and this investment will assist with expanding and growing our North American operations as we see to lead in-play betting and enhancing the overall customer experience.”
SIG Sports is the sports wing of the Susquehanna International Group of Companies. The overall company is focused on the derivatives market, institutional brokerage, private equity, sports analytics, and structured capital.
PointsBet seems to be preparing for future growth
PointsBet has already entered into a partnership with Nellie Analytics, which is another SIG subsidiary.
For nine months, Nellie Analytics will provide PointsBet with sports analytical services at no cost. When that timeframe is up, PointsBet will pay for the services with cash or shares.
Sports betting is a big business that deals in billions of dollars each month. People often wonder where the seed money comes from for the operators and providers. This is an example of where it comes from.
PointsBet is already available in 10 US states, including the large Michigan, New York, New Jersey, and Pennsylvania markets.
“After several years of thoroughly evaluating the North American sports betting market for the right partner, SIG Sports is pleased to have made what we consider to be a long-term investment in PointsBet,” said Jeff Yass, SIG co-founder and managing director.
“We have been following their journey for some time and have developed a very positive view of the overall business operations and the capability of the PointsBet leadership team. We believe PointsBet has great potential for future growth and success in the North American sports betting market and SIG has both the analytics and capital to help realize that potential.”