PointsBet commits to “fast start” in Ontario market
Australia-headquartered operator looks to early licensing in “hard margin” jurisdiction to deliver market share
PointsBet CEO Sam Swannell has said the firm will look to make a “fast start” in the Ontario market to establish a leading market share when the province launches on April 4.
Speaking as part of PointsBet’s H1 financial year 2022 results call, Swannell acknowledged that PointsBet would soon be joined as an Ontario licensee by US operators including the likes of FanDuel and BetMGM. PointsBet and Penn National Gaming brand theScore were among the first to receive licenses to operate in the Ontario market.
However, Swannell suggested PointsBet would leverage its first-mover advantage in the market against its rivals due to its ability to launch on day one of regulated operations, a strategy it would look to employ in other market launches.
“We want to get off to a fast start in Ontario,” Swannell said.
“This is a great opportunity for us to demonstrate everything that we have built. The product is now elite. We now have scale as a business. We have got a great strategy on the ground in Ontario.”
The PointsBet CEO continued: “This is our first opportunity to hard launch. We always talk about the fact that in most states where we have had a share of wallet, we have had to win these players off MGM, FanDuel, DraftKings, etc.
“Here is an opportunity for us to get clients first onto our platform, even if they do go on to take advantage of offers elsewhere, and that’s one thing about the Canadian-Ontario market,” he added.
In a criticism of PointsBet’s US rivals, Swannell alluded to the promotional sports betting war going on in operational states such as New York, something that would not be possible in Ontario due to the province’s restrictions on operator advertising.
“It will be a more product-led market, which is fantastic for us,” Swannell explained.
“In the US markets, there has always been an element of catch-up. We were a smaller player coming into that marketplace and now we have grown. One of the results of that was we have been catching up on these states.
“In Ontario, Maryland, Ohio, and the other new states, it’s good. There is only upside to come because we have got the product, we have got the team now, and we have got databases and marketing strategies to really hit the ground running.
“Yes, there is still a bit of clarity to come regarding the environment in Ontario and exactly who will be there, but we will be hitting the ground fast from the first minute,” Swannell added.
Echoing comments made by operators including DraftKings and Caesars, the PointsBet CEO suggested the operator would continue to be “disciplined” in its approach to marketing in the key battleground state of New York, which has enjoyed a blockbuster start to sportsbook operations.
PointsBet was one of nine operators to receive a New York sports betting license when the market launched in January. In the weeks following the launch, bettors in the state have been deluged with free bet offers and other promotional incentives as operators look to gain market share.
Swannell claimed PointsBet had seen some “very promising results” in the Empire State when compared to other operational launches in the past.
“True market shares will only be known once competitive churn from promotions washes through, but PointsBet is off to a promising start,” he explained.
“One call out is the popularity of our proprietary and unique PointsBet product with a financially settling New York market significantly over-indexing on this product versus other states.
“Also deposits from first-time depositors in New York are, on average, three times higher than in other live states,” Swannell added.