PointsBet acquired business-to-business software company Banach for $43 million in a move to expand its reach in the U.S.
The Australia-based sports betting company will pay 55% cash, issue 1.75 million shares, and spend $4 million to assist in the integration process.
Banach will add to PointsBet’s platform with its in-play bets and algorithms. In-play betting allows spectators to make bets — like who’s going to catch the next pass — during the game.
“The trend in this industry, especially in the U.S., will be all around in-play betting,” PointsBet CEO Johnny Aitken told CNBC. “Within three years, our expectation is roughly 75% of bets will be placed in-play.”
PointsBet isn’t the first to make the move. Competitor FanDuel had the same idea in partnering with Simplebet, whose software also allows users to wager on real-time odds.
Aitken thinks the acquisition — rather than a partnership — will give his company a leg up. “That’s the opportunity for PointsBet,” he said. “We own our technology.”
- Earlier this year, PointsBet agreed to an equity deal with the NHL, giving the league around $556,000 worth of stock.
- It also made a deal with NBCUniversal for in-game betting valued at $500 million, with the right for NBC to increase its stake to 25% from 4.9%.
By 2027, Grand View Research believes the global online gambling market will reach $127.3 billion. U.S. sports betting revenue is expected to reach $2.5 billion by the end of the year.
