The war chest is significantly fuller for PointsBet after finishing multiple share sales to raise cash.
The Australian-listed sports betting operator completed institutional and retail stock offerings to gross a total of A$353.2 million. That’s about $247 million in US dollars, which is a good chunk of change for a company that had about $100 million US in cash and equivalents at the end of June.
There’s little doubt where the cash is going: the US market. PointsBet recently signed a five-year marketing agreement with NBCUniversal that commits the company to $393.1 million in ad spend over the deal’s term.
That agreement is expected to help in all of PointsBet’s major markets. That includes sports betting in New Jersey, where the company hasn’t had a TV marketing presence yet.
Even without TV ads, PointsBet took 8.7% of NJ online handle in the second quarter.
PointsBet spending on more than NBC
That nearly $400 million in committed spending with NBC properties over five years is a lot for a company with about $5 million in US revenue for fiscal 2020.
It’s just one advertising avenue for the company, though. That total is less than 50% of the planned annualized investment in brand and marketing, US CEO Johnny Aitken told LSR.
PointsBet has been on a bit with new agreements recently. The sportsbook recently signed marketing agreements with:
- Chicago Bears
- Colorado Avalanche
- Denver Nuggets
- Detroit Tigers
- Indiana Pacers
- Indianapolis Colts
- University of Colorado
That shows a focus on sports betting in Colorado, where PointsBet launch is expected soon. Along with Colorado and New Jersey, the company is also live in the Illinois and Indiana sports betting markets.
PointsBet joined the IL sports betting market by launching its mobile platform before the first NFL betting Sunday of the 2020 season. It opened its first retail sportsbook in the state shortly after at Hawthorne Race Course.
Along with expanding its sportsbook across the US, PointsBet also remains on track to launch its online casino
Not the only sportsbook raising cash
It’s definitely a positive for PointsBet that the company has more cash to help boost its brand in the US. Unfortunately for them, its competitors are raising cash, too.
DraftKings raised another $620.8 million through a stock offering in June.
FanDuel Sportsbook parent, Flutter, then raised $1 billion through an accelerated bookbuild after closing its merger The Stars Group.
BetMGM, operated by MGM Resorts and GVC Holdings, upped the stake next. The two companies added $250 million in new funding for the Roar Digital joint venture in July, bringing the total combined investment to $450 million.