PointsBet Buying Banach Technology for $43 Million to Expand In-Game Betting Platform
Posted on: March 16, 2021, 10:19h.
Last updated on: March 16, 2021, 12:03h.
PointsBet (OTC:PBTHF) is acquiring Banach Technology for $43 million. The move is aimed at increasing the sportsbook operator’s footprint in the fast-growing in-game betting market.
PointsBet will pay 55 percent of the $43 million in cash and deliver 1.75 million shares to privately held Banach. The Australian company is also paying $4 million to the target to convert existing equity options, which will be retained by the buyer. The transaction is slated to close in April.
The acquisition will position PointsBet as a leader of in-play sports wagering in the US, just as in-play wagering is expected to grow exponentially,” said the Australian company in a statement.
PointsBet is operational in Colorado, Illinois, Indiana, Iowa, Michigan, and New Jersey. Its US headquarters is in Denver.
Ireland-based Banach develops risk management and trading platforms. They support traditional and in-game betting products for the four major US sports leagues and international soccer leagues.
PointsBet Wagering on Live Betting Boom
Currently, about half of all sports bets are placed live or in-game. PointsBet sees that percentage accelerating to 75 percent over the next three years.
That style of wagering is popular in markets outside the US, namely Europe, where slower-paced sports are popular with bettors. In the US, sports such as basketball, hockey and, to a lesser extent, football, aren’t conducive to in-game betting. However, baseball and golf, among others, are suited for it.
PointsBet rivals such as DraftKings (NASDAQ:DKNG) and Penn National Gaming (NASDAQ:PENN) previously highlighted opportunities for more in-game action in the US. PointsBet is the official betting partner of the PGA Tour.
“As legislation to approve sports betting accelerates across the US, it has become clear that the in-play opportunity will be very significant, and those with the best depth and breadth of product will win,” said PointsBet CEO Sam Swanell in the statement.
With the Banach purchase, PointsBet gets an experienced team of in-game developers because the Irish company’s founders previously ran the quantitative division at Flutter Entertainment (OTC:PDYPY).
Potentially Potent Purchase for PointsBet
Last year, PointsBet inked a $500 million deal with Comcast’s NBC Sports to become the broadcaster’s official sports betting partner. This confirmed its intent to become a major player in the US sports wagering scene.
As sports wagering becomes more mainstream, gaming and media companies are joining forces. That could provide a long-ranging avenue for increasing adoption of live betting, making PointsBet’s Banach buy look prescient.
“PointsBet offers the most markets on all four major U.S. sports (NFL, NBA, MLB, NHL),” according to the company.
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