PointsBet Group CEO Sam Swanell says the operator has received a vital boost in the North American sports betting market thanks to SIG Sports Investment and its Nellie Analytics operation.
Earlier this week, SIG Sports Investment became a strategic investor in PointsBet, providing $65.8m in funding to the sportsbook brand.
SIG Sports is now the operator’s largest shareholder at 12.8% after the placement of 38.75 million shares at $1.69 each. The investment price represents a 15% premium to the five-day volume-weighted average price to June 17.
As part of the investment, Nellie Analytics, SIG’s sports trading operation, will provide PointsBet Europe with access to its quantitative research while a long-term agreement is discussed.
Swanell highlighted that Nellie Analytics will help accelerate its product in the US and Canadian sports betting markets thanks to ‘more accurate lines and sharper risk management’.
“Excellence in technology and trading is at the forefront of everything we do at PointsBet,” Swanell stated.
“In Nellie Analytics we have found another like-minded team of technologists, whose services we believe can accelerate our product-led strategy and thus our right to win in the USA, Canada, and Australia.
“In practical terms, the partnership will enable PointsBet to have more accurate lines and sharper risk management. This will flow through to our customers in the form of higher wagering limits, less price suspension, faster bet placements, and improved value for bettors.”
Following the SIG Sports investment, PointsBet noted there will be no changes to its board of directors and that it will notify all relevant regulators of the change in shareholder makeup as required.
David Pollard, SIG’s Head of Strategic Planning, added: “Since its inception, Nellie Analytics has sought to leverage SIG’s experience in quantitative modeling in financial markets and apply those lessons to create a world-class sports analytics business particularly focused on in-play.
“We are thrilled to explore the possibility of applying that hard-earned knowledge to a like-minded partner’s platform. With the North American sports betting market still being in the very early innings of its development, we believe that PointsBet, with Nellie’s potential assistance, is well-positioned to capitalize on the market’s inevitable growth.”
