- US Online Poker
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PointsBet made a reverse play in its online casino launches. The Australian operator is most famous for its sportsbook, which is active in a half-dozen states. It branched out into the US iGaming space in Michigan in May. Now, it has launched another online casino in New Jersey.
This is the opposite of the usual pattern for other operators, who normally use the Garden State as their testing ground before entering other states. However, PointsBet is launching its casino there on the Bally’s license, which only became active recently. New Jersey is so well-known as a springboard state that some were surprised that Bally’s itself choose Colorado for the debut of its Bally Bet online sportsbook. A PointsBet representative didn’t immediately return Online Poker Report‘s request for comment today about the matter.
According to the Michigan Gaming Control Board (MGCB), PointsBet Casino generated $514,809 in gross gaming revenue (GGR) in June for the Wolverine State. That’s down 15.9% from its May total of $612,361. However, only three of its competitors recorded increases that month – Golden Nugget, Four Winds and Parx.
Though PointsBet’s order of launches is unusual, it wasn’t unexpected. The company announced its plans almost immediately after Bally’s Atlantic City was purchased last year by the company then known as Twin River Worldwide Holdings. Twin River also acquired the Bally’s name from Caesars as part of that deal, and took it as its own.
PointsBet is the first brand to launch on this new online casino license. Canadian sportsbook TheScore expects to follow suit. In time, Bally Bet itself will also branch out into iGaming, according to its chairman Soo Kim.
The PointsBet press release suggests that PointsBet is taking the long view:
“Across New Jersey, Pennsylvania, Michigan and West Virginia (all states in which PointsBet has iGaming market access), iGaming revenues reached nearly US $900 million in the June 2021 quarter, which if annualised [sic] would equate to greater than US $3.5 billion per annum. New Jersey iGaming revenues in particular have grown at a CAGR of 25% from 2014 to 2018, with revenues having subsequently grown at 62% and 101% in 2019 and 2020, respectively.”
PointsBet leaders told investors in April that it expects online casino revenues to eventually surpass those of online sports betting. However, they believe that it will take some time due to the slower pace of online casino legalization. In the shorter term, they said they expect US sports wagering revenue to be double that of iGaming in the US by 2025.
Indeed, PointsBet entered the US online sportsbook market with its differentiated product, points betting, in 2019. Then the operator debuted its online casino product two years later.
Still, the second part of the PointsBet announcement revealed an even more nascent market. On Aug. 17, PointsBet Canada will have its first CEO – Scott Vanderwel.