- PointsBet shares have fallen by 18%.
- Competition between brands is crowding the market.
LAS VEGAS – On Thursday, online sportsbook operator PointsBet revealed its shares had fallen by 18%.
PointsBet Shares Fall
In a recent quarterly update, PointsBet showed that its market share fell in the seven states that it currently operates in.
Even in New Jersey, the brand’s biggest market, its share fell from 7.8% in June down to 3.9% in September.
Shares also dropped off in other states like Michigan where it fell from 4.9% to 3.7%, and Indiana where it fell from 5.5% to 3.5%.
Although the online sportsbook operator has done very well for itself since going public in 2019 when its share prices soared from a listed $2 all the way up to $16 in February 2021, the increase in competitive customer acquisition has become even steeper for PointsBet.
Competition In The Sports Betting Market
The competitive nature of the sports betting industry is no surprise to Sam Swanell, chief executive of PointsBet.
“We were never naive as to the advantage that the bigger brands would have and the databases would have in the early days of the market,” said Swanell. “But… we firmly believe that a product-led strategy and in particular a strategy that means you have the market-leading in-play product will earn you that 10 per cent.”
With the massive rate at which the sports betting market is growing, it’s no surprise that big sportsbook operators are competing so hard for customers.