On the latest Sporticast episode, hosts Scott Soshnick and Eben Novy-Williams speak with Johnny Aitken, CEO of PointsBet’s U.S. operations, about America’s growing sports-betting industry.
Aitken discusses the cost to acquire new users, and why that calculus is different for an operator like PointsBet, which is hoping to grab 10-15% of the U.S. market, than it is for a rival like FanDuel or DraftKings, which are both aiming (and spending) for a much high number.
He also talks about finance giant Susquehanna’s recent investment in the company. Back in June, Susquehanna paid $65.7 million for nearly 13% of the company, making it PointsBet’s largest shareholder. That deal happened over the course of years, Aitken says, and will help his company with its pricing. That’s critical, he explains, because whether its organic tomatoes or Yankees odds, companies searching for discerning customers must be able to meet the demands for fair and competitive prices.
Aitken also talks about how the U.S. sports betting market is taking shape differently from what PointsBet sees in other countries. Notably, he says, in most international markets, operators typically see that 80% of their revenue comes from 20% of their active customers. In the U.S. however, he says the rule is closer to 90% of revenue coming from 10% of an operator’s active customers.
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