PointsBet’s Canadian business saw strong growth in fiscal year 2024, highlighted by its Canadian sports betting operations more than doubling its net win.

Betting win in the Canadian market was up 124% to $13.7 million CAD for the full fiscal year. For Q2 (Q4 of FY24 in Australia), the jump was even higher, at 147%. These improved upon the growth results posted for Q3 FY2024.

The Canadian growth was around 10 times as high as the company-wide trend. Across all markets, which includes Canada and the company’s home of Australia as well as the now-shuttered U.S. sportsbook operations, PointsBet’s betting net win was up 13.6% for the FY and 12.0% for the April-June 2024 period.

In Canada, sports betting handle was up 31% for the full year to $230.0 million CAD and up 54% year-over-year. From FY23 to FY24, gross win margin rose by 2.6% to 9%.

PointsBet growth outstrips Canadian market growth

Australia remains by far PointsBet’s cornerstone market, with $210.3 million CAD in sports betting net win and a betting handle of $2.4 billion CAD.

But, in an earnings call on July 30, PointsBet’s Group CEO Sam Swanell told analysts that the company is gaining market share in Canada and grew faster in Canada than the overall Canadian market in 2024.

“Our sports trading margin is consistently ahead of the broader market,” he said. “Our in-play mix of total handle remains strong at 66%. Our high sports margin and strong in-play handle percentage is a testament to our proprietary odds factory capability on the most popular North American and global sports…

“Canada remains an earlier stage market with more strong growth potential.”

He noted that PointsBet saw strong engagement from users throughout the NBA and NHL playoffs, as well as around the start of the MLB season. He attributed the surge in sportsbook net win in Q2 in particular to, “the excellence of our in-play betting product… [and] significant improvement from the PCP in our trading margin and more targeted promotional spending.”

PointsBet will provide a forward-looking outlook at its audited full-year results call in August. Swanell told analysts that “Canada remains an earlier-stage market with more strong growth potential.”

iGaming affected by Strive deal

As for iGaming, where Canada is PointsBet’s only market, the FY24 net win of $17.0 million CAD was up 63.5% from the previous year. That yielded a total net win across both online gaming and online sports betting of $30.7 million CAD, good for an 85% rise.

The uptick was much smaller in Q2, just 4%. Swanell noted that was “impacted by some VIP negative variance.”

It was also a partial result of PointsBet increasing its promotional spending in the quarter “to reengage our base” after completing the Strive Gaming migration, he explained.

PointsBet struck a deal with platform provider Strive in December to use the provider’s technology to diversify its casino offerings by integrating multiple content providers onto a unified PointsBet platform. At that time,  Scott Vanderwel, CEO of PointsBet Canada, said the move would help PointsBet to elevate its online casino for users in the regulated Ontario market.

PointsBet more positive after U.S. business sale

Swanell also spoke to how the sale of PointsBet’s U.S. business to Fanatics in FY24, which was completed in April, boosted its overall full-year results.

He added that the full-year FY2024 normalized EBITDA guidance, which was previously estimated at a loss of between $3.6 million CAD and $5.4 million CAD, has been adjusted to a loss of around $1.6 million. That would represent a $42.6 million CAD improvement from the loss incurred in FY2023. The company also posted a record Q2 net cash flow of positive $6.4 million.

Swanell noted that the improved outlook has been driven by record full-year Group net win, as well as improved efficiency and productivity and further investment in core technology and product capabilities and strategic marketing investment.

“This is driving our market share growth in Australia and Canada and setting the company up for further success in FY2025 and beyond,” Swanell said.