Johnny Aitken, the US CEO of PointsBet, has had a lot going on lately, to say the least. The Australian sports betting operator has recently landed its first mega-media sponsorship with the likes of NBCUniversal.
Right after that deal, Aitken and PointsBet are hitting up Chicago. PointsBet is preparing to make waves with sports betting in Illinois.
This will be the fourth state that has the PointsBet name with it. Although they are happy to have the others, they are definitely excited at the opportunity that Illinois brings due to their prime locations.
What The Future Holds
If you could bet on whether or not PointsBet was going to keep trucking along like this, would you have been right? They are arguably at one of the best positions to enter markets and show no signs now of backing down.
PointsBet has all the confidence in the world. Take a look at the statement Aitken gave, “With the weight of NBC behind us with that deal, we feel extremely confident about our position to win market access in the states we choose to enter.” In other words, PointsBet is ready to take on the Illinois market and to keep climbing.
Location Is Everything
PointsBet has a partnership with Hawthorne Race Course, along with three of its off-track betting locations, to now make it four sportsbooks surrounding Chicago. Aitken and their team were meticulous in selecting what locations to provide sportsbooks in the area.
If you think about it, take any direction leaving Chicago, and you will run into one of the four sportsbook locations. This is huge, taking into account that Illinois had required in-person registration for potentially the first year and a half.
Governor J.B Pritzker, however, has now allowed twice the action of remote signup for customers. This current one lasts until September 19, and it is yet to be determined if another one will be put in place again or end it altogether.
PointsBet has said that they believe they can handle whatever the market has in store for them. Aitken also stated that they are a company of multiple scenarios and are always looking to execute backup plans if needed.
NBC Ad Spending
PointsBet has a five-year agreement that includes $393 million in marketing spending with NBC properties. Even though the company has roughly $100 on the balance sheet, Aitken is confident in the annualized spending plan since it is money he believes they were going to spend on marketing anyway.
Additional cash could be on the horizon, with NBC providing some cash later too. PointsBet announced they are raising roughly $220 million through their retail and institutional stock offerings.
NBC received a 4.9% stake in PointsBet with their deal. So NBC will have the option if they wanted to buy nearly 67 million shares at $13 each after five years, which would provide additional funds to PointsBet.
PointsBet has one heck of a market plan in place, and this is only the beginning. Handling what Illinois holds in store for them could become quite a lucrative process for them.
The prime location, along with the retail market that Illinois has, is what makes this deal more exciting than previous ones for PointsBet. In addition to the NBC deal, they are a brand that is hungrier than ever to get the ball rolling.
Whatever the situation, PointsBet looks poised to adapt to and gain from. Just in a few short weeks, we should be able to see these changes.