PointsBet warns of 16% revenue fall as Alberta launch slips

PointsBet has issued a trading update warning investors that H1 2027 revenue is likely to fall around 16% year-on-year to roughly AU$113m (£59.5m), down from AU$135m in the same period last year, SBC News reports.

The ASX-listed bookmaker pointed to two factors behind the decline: a tightening of its own compliance standards and a deliberate strategic shift toward mass-market sports betting, which the company said can create short-term volatility in net win margins.

That compliance tightening comes against a backdrop of heightened regulatory scrutiny of Australian gambling operators generally, driven by public concern over problem gambling.

The push into mass-market sports activity coincided with a sports calendar PointsBet would normally expect to capitalise on, including the closing rounds of the National Rugby League and Australian Football League seasons and the full run of the 2026 FIFA World Cup.

PointsBet said results in the AFL during August and September were unfavourable, while the opening stages of the World Cup produced what operators commonly describe as punter-friendly outcomes, squeezing margins further.

The update is likely to concern MIXI, the Japanese company that acquired a 66% majority stake in PointsBet in September 2025 in a deal that valued the business at approximately AU$420m. PointsBet's market capitalisation has since fallen to AU$281.6m.

Ontario remains a bright spot for the group and has been positioned as a key driver of growth even as Australian revenue softens, which adds pressure on PointsBet to get its next regulated Canadian market moving.

The company has begun the formal registration process with the Alberta Gaming, Liquor and Cannabis commission and has opened pre-registration for players in the province, but has not yet gone live there, unlike many rival operators that launched in Alberta from day one.

PointsBet's FY26 results had pointed to a launch sometime before the end of the 2026 calendar year, leaving only a narrow window for the operator to show investors and prospective customers that the Alberta rollout remains on schedule.

The broader Australian market continues to face regulatory turbulence, with Prime Minister Anthony Albanese's government pursuing a package of gambling reforms that advocates for stricter rules say still falls short of what is needed.

Against that backdrop, PointsBet said it expects normalised EBITDA for the first half to land between AU$6m and AU$8m.