PointsBet Q3 revenue up 285% as NBC Sports integration commences

PointsBet’s US business recorded net revenue of $2.2m in Q3 compared to a $570m loss the previous year.

The vast majority (93%) of PointsBet’s $7m gross US revenue for Q3 came from New Jersey, as the firm’s US handle increased by 130% year on year to $117.1m.

However, growth in New Jersey was offset by expected negative revenue impact in Illinois and Indiana as the firm ran a high promotion strategy during its opening weeks in each state.

Marketing expenses for the quarter were up to $11.8m after the operator reduced its spend in Q2 amid a lack of sports during the Covid-19 shutdown.

The majority of this spend was invested into launching and marketing the betting product in Illinois.

PointsBet’s market share in New Jersey dropped slightly to 6.2% from 8.7% in the previous quarter, although active clients increased 159% annually to 39,800.

Group CEO Sam Swanell attributed this slight drop is share to professional sports returning in the state. He said the business was targeting an average NJ share of 6% to 7% until it launches igaming next year.

The firm will launch its betting product in Colorado in November, with plans to roll out betting and igaming in Michigan in Q1 2021.

Upon securing its major multi-platform media partnership with NBC Sports in August, the two parties started integrating the PointsBet product into NBC’s media properties.

The NBC Sports logo was quickly integrated into PointsBet’s app, while the operator’s odds were added to NBC Sports.com and targeted regional sports networks (RSNs).

NBC Sports received more than 4.4 million digital impressions via its PointsBet integrated channels in September.

“These types of integrations are just the beginning and we are thrilled with the progress being made,” Swanell told investors and analysts.

“It speaks to the aligned interests as structured in our agreement,” he added.