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PointsBet has posted its first positive net-revenue quarter since launching in the US sports betting market.
The Australian company last week filed financial results for the final quarter of 2019, with a US net win of $3.4 million.
The maiden positive quarter was fueled by high-staking customers, who provided $1.5 million (44%) of the net revenue total after losing 16.5% of their total wagers.
PointsBet warned that figure was unsustainable and likely to normalize in the medium-term.
The firm’s gross revenue (before bonuses) was significantly higher at $8.1 million, suggesting PointsBet spent around $4.7 million on promotions and bonuses in the quarter.
The spend reflected “an important customer acquisition and retention period,” PointsBet said.
Active US customers were up 17% on the prior quarter to a little more than 21,000.
The company’s New Jersey sports betting market share by turnover fell from 6.7% to 5.9% thanks largely to a drop in wagers from those unlucky high-staking customers.
PointsBet is also live in Iowa, which accounted for around 3% of US turnover. The company aims to launch online in Indiana by April.
Illinois, Colorado and Michigan are next in line for launches.
“PointsBet is well-positioned to take advantage of the growing opportunity in the wider US as other states go live,” the firm said its financial report.
“PointsBet has been investing in building the brand and free-to-play database outside of New Jersey. Not only does this mean PointsBet is going into new states with existing brand recognition but it also assists in PointBet’s market access strategy as we expand across the US.
The company also announced yesterday a new sports betting market-access deal for Kansas.
PointsBet secured an exclusive primary skin agreement with Kansas Crossing Casino for both online and retail wagering. The firm now has access to 12 US states with an estimated market value of $5.2 billion.
Betting is not yet legal in Kansas, but there is a seemingly favorable bill making its way through the legislature.
Each of Kansas’ four casino operators would get two sports betting licenses. Each license allows mobile betting, which means there could be eight online sportsbooks in the state.
“PointsBet is proud to partner with Kansas Crossing and gain the opportunity to provide the state with a top-notch retail and online sportsbook,” said Johnny Aitken, PointsBet USA CEO.
“The team behind Kansas Crossing represents one of the best in US gaming, and we look forward to many years of great success working together and introducing new clients to a truly innovative, customer-first experience from start-to-finish.”
PointsBet’s share price dipped 4.5% on the Australian Stock Exchange following the announcements.