PointsBet has announced a 169% year-on-year rise in turnover for the second quarter, reporting growth across both its Australian and US businesses, while the online sports betting operator has also struck a market access deal in Kansas.
Turnover for the three months to December 31 2019 amounted to Aus$297.3m (£151.5m/€180.3m/US$198.9m), up from $110.6m in the corresponding period last year.
Net revenue was also up 117% year-on-year to $18.0m as PointsBet was boosted by higher spending among its customers across Australia and the US.
The PointsBet Australia business generated $184.8m in turnover in Q2, up 67% from $110.5m last year, while net revenue also climbed 76% to $14.6m.
Meanwhile, the operator’s growing US business continued to boost its overall performance, with turnover from operations in New Jersey and Iowa coming in at $112.5m, while net revenue amounted to $3.4m for the quarter.
New Jersey turnover totalled $108.8m, while net revenue in the state stood at $3.3m.
In Iowa, turnover hit $3.7m and net revenue amounted to $100,000, with the majority of activity on the state coming through its retail, land-based operations. Q2 also saw the launch of digital operations in Iowa, with PointsBet taking its first bets in November.
Expanding US operations led to an increase in customers in the country, with the total number of registered US players standing at 21,141 by the end of Q2, up from just 35 last year.
PointsBet also saw its Australian customer base climb from 45,828 in Q2 of 2018 to 81,014 this year. In total, registered and active clients were up 123% year-on-year to 102,155 at the end of the most recent quarter.
In terms of spending, administrations and corporate costs, including the cost of sales, were the main outgoing for PointsBet, with the operator spending $13.5m in the quarter.
Advertising and marketing spend also amounted to $10.4m, while staff costs hit $7.5m. This, coupled with other, smaller outgoings in the period, saw the operator reduce its operating loss from $23.0m in Q2 2018-19 to $14.3m.
Q2 also saw PointsBet complete a $122.1m equity raising to support US market access and its growth plans in the country. As a result, it held cash and cash equivalents of $157.5m as of December 31, 2018.
After the end of the quarter, PointsBet also announced a number of key deals, all aimed at growing its US presence, Earlier this month, the operator partnered the Lac Vieux Desert Band of Lake Superior Chippewa Indians in Michigan.
Through this 20-year agreement, PointsBet will launch mobile and desktop sports betting offerings in the state, as well as a branded tribal product. The partnership could be expanded into the retail channel in future, with PointsBet in negotiations to operate a sportsbook at the tribe’s Northern Waters Casino Resort.
In addition, PointsBet has announced that it will expand its services into Kansas via an exclusive primary skin agreement with Kansas Crossing Casino. The deal will allow PointsBet to provide retail and online sports wagering in the state, contingent upon obtaining a licence.
PointsBet and Kansas Crossing will build a multi-faceted sports entertainment venue, featuring a sports bar, multi-screen video and odds display wall, as well as additional casino gaming options and on-site viewing parties.
“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 USA chief executive Johnny Aitken said.
Doug Fisher, vice president and general manager of Kansas Crossing, added: “We are certainly aligned in our efforts to provide the great citizens of the Sunflower State with the premium product they deserve, and we look forward to doing so with the PointsBet team.”
PointsBet also recently stated that it intends to launch in Colorado after the state in November last year legalised sports betting.