5 questions lodged at 2023 Pointsbet EGM

June 30, 2023

Here is the text of the 5 written questions lodged at the 45 minute Pointsbet hybrid EGM held on June 30, 2023 to approve the $US225 million sale of its US business to rival Fanatics. Chair Brett Paton gave an informative EGM address and the vote was 99% in favour.

1. Well done on exiting a super competitive loss-making US market for a reasonable price. What is our net less overall from entering the US market, excluding any expenditure on the Canadian operations?

Answer: Chair handed over to the company secretary who said losses would be disclosed in August - listen to answer via Twitter.

2. Why are we proposing such a large cash return rather than conserving cash for acquisition opportunities in Australia, such as buying BETR. Have we had any discussions with BETR or other smaller local competitors such as Blue Bet. Given the apocalypse of global competition in the US market, could the chair and CEO please comment on competitive pressures in the Australian sports gambling market and whether the proposed advertising ban is a major risk going forward as we concentrate our operations in Australia.

Answer: CEO Sam Swanell was confident they will grow their Australian market share with tougher regulations weeding out smaller cowboys - listen to comments via Twitter. Chair Brett Paton they wanted to sell down for a while and keep focused - listen to his comments via Twitter. (plus this extra bit)

3. In hindsight, do we regret doing the NBC Universal advertising deal? Would our losses have been lower if we'd gone it alone. Who were the main executives we dealt with at NBC Universal and are they happy with our exit from the US market?

Answer: CEO Sam Swanell said it was the right deal at the time - listen to answer via Twitter. Chair Brett Paton explained that they won a competitive auction to secure the deal which was right at the time but didn't work out. Listen to audio via Twitter.

4. Why is the share price only trading at around $1.75 if we are proposing to return up to $1.40 per share in cash to shareholders. Is our Australian business really worth that little and have we considered during a share consolidation so our shares don't trade at embarrassingly low levels below 50c.

Answer: chairman and former investment banker Brett Paton offers history lesson on IPO pricing as Pointsbet question reader censors word “embarrassing” when asked about prospect of the stock trading at circa 30c after these two upcoming capital returns. The 1980s Ashton Mining float got a mention. Listen to answer via Twitter. The company secretary then asked the question again and the chair said he was puzzled why the market wasn't pricing in the much improved US exit. Listen to second answer via Twitter.

5. Canada sounds attractive with a gross gaming tax rate of just 18% and minimal product fees. After all these recent increases in Australian taxes, what is our Australian tax rate and what percentage of gross gaming revenue is paid to racing and sporting codes in Australia? Is this the highest of any jurisdiction in the world?

Answer: CEO Sam Swanell warned about Australia's high taxes and product fees compared with Canada - listen to response via Twitter.

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5 questions lodged at 2023 Pointsbet EGM

June 30, 2023

Here is the text of the 5 written questions lodged at the 45 minute Pointsbet hybrid EGM held on June 30, 2023 to approve the $US225 million sale of its US business to rival Fanatics. Chair Brett Paton gave an informative EGM address and the vote was 99% in favour.