PointsBet pulls Massachusetts sports betting application ahead of market launch
Operator switches attention to existing states to focus on “immense” total addressable market
PointsBet has chosen to withdraw its application for an online sports betting license in Massachusetts, the Australia-headquartered operator has confirmed.
The move comes just ahead of the expected launch of the Bay State’s online sportsbook market in March, with the Massachusetts Gaming Commission targeting a March 10 launch date.
The news was initially confirmed by MGC chair Cathy Judd-Stein at the regulator’s meeting on Thursday, and was later followed up by a statement from the ASX-listed operator.
In a statement reported by the Mass Live news website, a spokesperson for PointsBet said: “You will have seen the outcome from the Massachusetts Gaming Commission meeting today where PointsBet made the decision to withdraw its application at this time.
“We have chosen this path to emphasize our continued focus on our 14 live states of the US (plus Ontario) and how we can best optimize those markets which provide an immense TAM [total addressable market] for us to go after.
“We would like to thank the Massachusetts Gaming Commission for their consideration of our application, conducting extensive hearings, and deeming PointsBet suitable for licensure ahead of the launch of legalized sports wagering in the Commonwealth of Massachusetts,” PointsBet added.
PointsBet has operations in 14 states, with its US division recently reporting a 68% year-on-year rise in total net win to A$40.6m, a 128% jump in igaming net win to A$12.2m, and sports betting net win growing by 51% to A$28.4m.
The firm also realigned its existing partnership with NBC Sports earlier this month in order to significantly reduce average annual marketing spend to optimum investment levels while also augmenting PointsBet’s localized, targeted marketing strategy.
The Massachusetts exit comes despite PointsBet being deemed suitable for licensing by the MGC, following a full presentation by the firm to the five-member panel in which it revealed details of its business strategy, technology, and its responsible gambling plans it would use in the state.
PointsBet’s decision to ditch the Bay State echoes that of bet365, which confirmed its own exit from the MGC’s licensing process in January.
As it stands, just 10 operators have been deemed suitable for licensing: Bally’s, PENN Entertainment, BetMGM, betr, Betway, Caesars, DraftKings, FanDuel , Fanatics, and Wynn Resorts, which could all launch on March 10.
However, it is understood Betway has chosen to delay its launch in Massachusetts, while Bally’s and Fanatics will launch in the state in May.
Bally’s decision mirrors its strategy in New York, where the Bally Bet sportsbook launched after the state had opened its online market in order to avoid what chairman Soo Kim called a “bloodbath” of potentially costly promotional activity.
A total of 15 licenses are available, eight of which are tethered to land-based casinos in the state, with a further seven untethered licenses available through a competitive bidding process.
Retail sportsbook operators are taxed at a rate of 15%, rising to 20% for those online operators, with betting on in-state college teams banned by Massachusetts gaming law.