AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Finance Topics: Finance Sports betting Regions: Oceania US Australia US growth pushes turnover up at PointsBet in Q1 Email Address Tags: Online Gambling PointsBet has reported a 138% year-on-year rise in turnover during the first quarter, primarily due to its launch and subsequent expansion in the US, while the online sports betting operator has also revealed plans to raise AUD$122.1m through a share placing. 28th October 2019 | By contenteditor Subscribe to the iGaming newsletter PointsBet has reported a 138% year-on-year rise in turnover during the first quarter, primarily due to its launch and subsequent expansion in the US, while the online sports betting operator has also revealed plans to raise AUD$122.1m (£64.9m/€75.2m/US$88.3m) through a share placing.Turnover for the three months to 30 September 2019 amounted to $235.8m, representing a significant increase on $99.1m in the corresponding period last year.Higher spending among customers also pushed net revenue for the quarter up 138% on a year-on-year basis from $5.0m to $11.8m, according the operator’s revenue update.For its core Australian business, turnover rose 66% to $164.4m, with net win more than doubling to $12.6m. It also began to see returns from the US, where it is currently live in New Jersey, launching in January this year, and Iowa, in partnership with Catfish Bend Casino.US turnover for Q1 amounted to $71.4m, comprising $55.0m from its mobile offering in New Jersey, $0.7m from its retail operation in Iowa, where it is yet to roll out mobile, and $15.6m from high-staking players in New Jersey. The operator began accepting bets from the latter customer segment from August.While it held $2.7m from the digital offering in the Garden State, and $0.1m from Iowa, it lost $3.6m following a successful month for high stakes customers, leading to a net loss of $0.8m for the quarter.Expanded activities in the US inevitably led to an increase on active customers, with this increasing 166% year-on-year to 87,391. The number of registered players at PointsBet also rocketed 223% to 148,902.The operator plans to significantly expand its US business in the coming months, starting with a mobile roll-out in Iowa by the end of 2019. Its partnership with Penn National Gaming, agreed in August this year, provides it with a route into up to 10 states. This will see it first move into Indiana, with a view to launching there before the end of the current National Football League season in February 2020.PointsBet has also struck deals with the Double Eagle Casino in Colorado, where voters are to have their say on a sports betting bill next month, and Illinois’ Hawthorne Racecourse.Expanded activities in the US inevitably led to an increase on active customers, with this increasing 166% year-on-year to 87,391. The number of registered players at PointsBet also rocketed 223% to 148,902.In terms of expenses, PointsBet’s main spend was administrative and corporate costs, which amounted to $8.1m for the quarter. Advertising and marketing costs totalled $7.9m, while staff costs came in at $6.7m for the three-month period. After expenses, the operator’s first quarter loss stood at $8.8m.The company will now look to significantly increase its available cash through a scheme to raise an additional $122.1m in funding, which will see up to 16,666,667 new shares issued.PointsBet will issue new shares valued at $3.60 apiece, a 13.9% discount on the operator’s closing share price of $4.18 on 28 October, via an institutional placement to new investors to raise $60m. It will also make a non-transferable offer to existing shareholders, to purchase up to $62.1m in shares priced at $3.20 apiece, a discount of 23.4%.Should the placements prove successful, PointsBet said that it plans to use the proceeds to support its marketing and client acquisition, technology and product development as well as US business development, including licensing fees and sportsbook costs.PointsBet said it expects the placement to be settled on 8 November, with new shares to begin trading on 11 November.