Betr, an Australian company, may buy PointsBet’s Australian business.

PointsBet, an Australian sports betting company that has been said to be selling its US operations, said early Wednesday (Tuesday afternoon in the US) that it was in talks with NTD Pty Limited to sell its Australian business.

PointsBet

NTD, based in Australia, owns Betr (no relation to the US-based company with the same name).

PointsBet filed a five-paragraph statement to the Australian Securities Exchange (ASX) before trading began on Wednesday in reaction to an article in The Australian from last Friday. To maximize shareholder value, the corporation “routinely considers possibilities,” including acquisition bids.

“Talks between PointsBet and NTD aren’t finished and are just getting started,” the statement said. “There is no guarantee that these talks will lead to a deal that is legally binding.”

PointsBet said that its “global strategy and opportunities” would be used to evaluate NTD’s offer. The statement didn’t say anything about the terms of the offer, but The Australian said the deal could be worth between AUS$200 million and AUS$250 million (US$134.9 million and US$168.6 million).

PointsBet has products for racing, betting on sports, and iGaming in the US, Canada, Ireland, and Australia.

Focus on the US Market for Sale?

In Wednesday’s Australian Financial Review, PointsBet could focus on its sportsbooks and online gaming apps in Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Pennsylvania, Virginia, West Virginia, and Ontario if it sold its Australian operation. PointsBet awaits Ohio’s license approval.

PointsBet’s US unit is bleeding money, unlike its Australian operations. The company lost almost US$180 million in the fiscal year that ended in June because it spent nearly US$110 million on marketing and advertising in the country.

The article suggests NTD’s Betr may consider entering the US market after the buy. Sportsbet founder Matt Tripp backs it. News Corp and BetMakers Technology Group hold.

If so, NTD’s Betr will likely need a new name in the U.S. Betr, a $50 million US microbet startup, attracts clients with Jake Paul’s original content. When Ohio legalizes sports betting this weekend, Betr will begin operations.

Recent attempts at marketing have failed.

This month, PointsBet has been in the news for advertising mistakes it made in both Australia and the United States.

Australian Ad Standards called a Shaquille O’Neal ad the worst of the year. O’Neal struggles to understand young Australian males in the ad. The spot received a record number of complaints.

When it claimed that Drew Brees was struck by lightning while filming a sportsbook commercial in Venezuela, the company received negative news. It was a prank to promote PointsBet’s Lightning Bets, which are microbetting. Brees was fine.

In an unrelated move, PointsBet ended its association with Brees last Thursday after he decided to be an interim assistant football coach at Purdue, his former university, which will play in the Cheez-It Citrus Bowl next Monday in Orlando. The operator cited “ethical gaming procedures” and “the integrity of regulated sports betting” for the adjustment.