Could PointsBet Casino Struggles Lead To Consolidation Or A Third-Party Supplier?

If you are a sports bettor in Michigan, chances are you are familiar with PointsBet Sportsbook.

It’s steadily been in the top half of revenue performers in Michigan’s sports betting industry.

With steady ad campaigns and exclusive gaming options and promotions, PointsBet has made the effort to be a player in Michigan.

When it comes to PointsBet Casino, the same can’t be said.

Out of 15 operators, PointsBet sits dead last in the state.

Is it a sign that PointsBet might be looking to shake up its online casino, or could it be considering a third-party route?

PointsBet Sportsbook a steady force in Michigan

Partnered with the Lac Vieux Desert Band of Lake Superior Chippewa Indians, PointsBet Sportsbook MI is the online sportsbook for Northern Waters Casino Resort.

It launched in May of 2021, becoming the 13th online sportsbook in Michigan.

Since, PointsBet has always had a steady place in the mitten.

Throughout 2022, PointsBet held anywhere from 2.59-3.03% of the sports betting handle in Michigan.

In 2021, PointsBet actually peaked at just under 6% of the share in both November and December.

All-time with $294.4 million in handle, PointsBet has accounted for 3.13% of Michigan’s market.

That has put it sixth in the state. PointsBet is well ahead of BetRivers ($134.3 million) and well behind Caesars ($564.7 million).

PointsBet Sportsbook has been consistent with its cycling of promotional offers and attention-grabbing ad campaigns. It also offers PointsBetting, an exclusive betting system that allows users to customize their wagers.

PointsBet Casino ranking last in Michigan

Given its high performance in the state when it comes to sports betting, PointsBet having generated the lowest revenue of all Michigan online casinos is quite surprising.

PointsBet has generated just over $17 million in iGaming revenue. That’s last among the state’s 15 operators by more than $4 million, and includes Eagle Casino & Sports, which just launched in April of 2022.

PointsBet Casino has a limited gaming library of just over 160 games. That makes it hard to compete with other operators. PointsBet currently offers:

  • Live-Dealer: 8 games
  • Slots: 137 titles
  • Table Games: 13 titles
  • Video Poker: 7 titles

Could PointsBet consolidate in 2023?

With such a lacking presence in the online casino industry, PointsBet could be a potential company that sees consolidation in the next year.

Industry experts are projecting that 2023 could see a lot of company takeovers in the sports betting industry, which could also apply to the smaller online casino industry.

PointsBet, an Australian-based company, appears to be an attractive option as its CEO noted in its recent Q4 financial report.

“The amount of third-party strategic interest shown in our company demonstrates we have built a very valuable business,” PointsBet CEO Sam Swanell said. “This gives us significant optionality around how we take the business forward to maximize value for our shareholders.”

Should PointsBet not elect to be consolidated, it could just look to move its online casino platform to a third-party supplier.

That would allow PointsBet to put its focus onto the sports betting product, which has had success. It also cuts cost to operate its online casino, leaving it the hands of a company with a proven blueprint to run a successful iGaming platform.

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