PointsBet (OTC: PBTHF) reportedly meshed investment cant Moelis & Co. to explore a sales event of its Frederick North American operations inwards a sign on the companion wants to nidus on its more profitable Aboriginal Australian business.

Both PointsBet arms experience been the topic of long-running takeover rumors, but the manipulator has struggled to attain profitability in the fiercely private-enterprise(a) and expensive US market. As a result, its securities industry portion in this state is paltry compared to rivals such as FanDuel, DraftKings, BetMGM, and Caesars Sportsbook.

We believe farther manufacture consolidation is inevitable, and we’ll place PointsBet to take advantage of movement inwards the sector,” a PointsBet spokesman told The Aussie Financial Review.

Entering this year, it was widely believed that by virtuousness of FanDuel, DraftKings, and BetMGM controlling 85% of the US roving sports betting market, consolidation would live a primary theme among smaller players, such as PointsBet.

Why PointsBet is an Attractive Target

While it’s non profitable inwards the US and it’s struggled to attain self-coloured market place divvy up here, at that place are reasons to trust PointsBet is a compelling takeover target.

First, the securities industry value of the full accompany is just $242.36 million, substance the US side of the business could likely be had at favorable pricing. Second, the manipulator has licenses in 14 states, including the attractive Ohio River market. Third, its revenue is growing and costs are declining. Finally, it sits on mounds of cash.

The Australian Financial Review reported that an unidentified private equity keep company kicked the tires on PointsBet this week, but interestingness was described as tepid. The publication also mentioned Bally’s (NYSE: BALY) as a possible suitor. The casino operator faces a similar conundrum to PointsBet: an unprofitable digital business sector and small US sports wagering market share.

In recent years, Bally’s has been ane of the to the highest degree acquisitive companies inwards the gaming industry, but some of its digital and sports wagering-related purchases proved ill-fated and the manipulator is at present focusing on reducing costs.

Could William Penn Entertainment Be a Player for PointsBet?

Though non mentioned past the Australian Financial Review, William Penn Entertainment (NASDAQ: PENN) could be a gens to watch out regarding a PointsBet takeover. Penn’s Barstool Sportsbook is also a bit player inwards market part terms inwards the US. If the damage is right on for PointsBet, Penn could economically long pillow Barstool Sportsbook’s marketplace share.

Even if another wooer acquires PointsBet, Penn could do good because the regional cassino operator owns an equity stake inward the Aussie firm.

PointsBet is live in Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia, and Mae West Virginia. That roster could follow attractive to prospective suitors, peculiarly those that need in on established markets and up-and-comers such as Old Line State and Ohio.

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