PointsBet forecasts revenue drop as compliance measures curb high-value betting
The Australian sportsbook operator expects its normalized EBITDA loss to widen amid a continued strengthening of compliance standards.
Australian sportsbook operator PointsBet expects its group revenue to fall 16 per cent for the first half of its 2027 financial year, as tighter compliance measures reduce betting activity among its highest-value customers.
The company forecast revenue of approximately AU$113 million for the six months ended September 30, down from AU$135 million a year earlier.
Its normalized EBITDA loss is also expected to widen to between AU$6 million and AU$8 million, compared with a loss of AU$3.3 million in the first half of the 2026 financial year.
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PointsBet said the downturn was the result of a "continued strengthening of PointsBet’s compliance standards."
The operator reported double-digit year-on-year falls in both turnover and revenue from its highest-value customer segment throughout the first half.
It said the fall was the result of proactive compliance measures, amid growing regulatory scrutiny of Australia’s gambling industry.
"We believe these have been important decisions to make in the context of an increasingly complex regulatory environment in Australia," a PointsBet spokesperson said.
The company’s strategy of expanding its mass market sports betting business in Australia was also singled out.
PointsBet said that while active customers and betting turnover were up for the period, margin was down as a result of "adverse results" in the Australian Football League.
PointsBet’s difficulties in Australia come just over a year after Japanese technology company MIXI acquired a 66.4 per cent controlling stake in the company.
The MIXI deal, completed in September 2025, valued PointsBet at around AU$434 million, but its market capitalization has since fallen by more than a third.
Another challenge facing the operator is the expansion of its Canadian business.
PointsBet began pre-registration in the province of Alberta in February, but failed to launch on day one of the new market.
It has previously said it expects to go live during the second half of the 2026 financial year.
It will hope to replicate the success it has enjoyed in Ontario, where revenue was up 13 per cent to AU$34.6 million during the first nine months of the 2026 financial year.
PointsBet will publish full results for the first half of its 2027 financial year on October 30.