PointsBet has issued a trading update to make investors aware that it expects a 16% year-on-year decline in H1 2027 revenue.
The company, which Japanese giant MIXI bought a 66% majority stake in just over a year ago, expects the figure to come in at around AU$113m (£59.5m) – a significant drop from the $135m in the same period last year.
The “key themes” hindering growth at PointsBet
PointsBet has attributed its 2026 slowdown to “a continuation of two key themes”:
- “A continued strengthening of PointsBet’s compliance standards”. The regulatory scrutiny of Australia’s gambling contingent as a whole has been under the pump due to public fears over an increase in citizens suffering from gambling harms.
- “A deliberate choice to accelerate growth in mass market sports activities, which can lead to short term volatility in Net Win margins”. This deliberate choice will likely be down to the higher chance of customer acquisition presented during the period.
This second choice also occurred in a period which contained the final stages of the National Rugby League (NRL) and Australian Football League (AFL) seasons, alongside the entirety of the 2026 FIFA World Cup.
PointsBet noted “adverse results” in the AFL in August and September, and the World Cup was subject to what many operators generally classify as “punter-friendly results” in its early stages.
Despite the ASX-listed operator having clear and obvious reasoning for this decline in revenue, it may worry majority shareholder MIXI.
The business purchased its majority stake back in September 2025, which valued PointsBet at approximately $420m. Its market cap has fallen notably since and now sits at $281.6m.
No sign of Alberta launch… yet
Since then, the company has entered the official registration process with the Alberta Gaming, Liquor and Cannabis (AGLC) agency and opened pre-registration for local players, but is yet to officially launch in Canada’s second regulated gambling market.
PointsBet’s operation in Ontario has been touted as a key revenue driver despite a drop off in Australia, and therefore it makes sense for the group to launch in Alberta.
But unlike a vast array of operators who launched there on day one, the PointsBet brand is still yet to land there.
Its FY26 results stated that its operations there are “expected to go live in the second half of calendar year 2026”, meaning there is still a couple of months left to display to investors and potential customers that the move is still on track.
Many operators Down Under are currently navigating a rocky path with so much regulatory uncertainty around gambling. PointsBet seems to be no different.
Prime Minister Anthony Albanese‘s government is pressing ahead with a package of gambling reforms, but many pro-gambling reform advocates feel measures haven’t gone far enough.
Due to the circumstances outlined above, the business expects H1 normalised EBITDA to be in the range of $6m-$8m.
