PointsBet projects revenue drop due to stricter VIP compliance

Australian betting operator PointsBet is facing a challenging financial period. In a recent update to investors, the company announced that revenue for the first half of the 2027 financial year is expected to reach approximately A$113m. This represents a 16 percent decline compared to the A$135m generated in the same period last year. The primary driver for this downturn is the implementation of stricter compliance measures for VIP customers in its home market of Australia.

The company is responding to an increasingly complex regulatory environment. PointsBet has taken proactive steps to ensure compliance, which has directly resulted in a decline in activity among its highest-value customers. This strategic decision reflects a trend observed in the 2025 and 2026 financial years. It serves as a clear signal that safety and compliance are now prioritized over raw revenue growth.

Numbers and facts

Financial projections for the half-year ending September 30 show that not only revenue but also operating results are under pressure. Normalized EBITDA is expected to fall between a loss of A$6m and A$8m. For comparison, the loss in the first half of the previous year was A$3.3m. This means the deficit has nearly doubled.

According to the company, sporting results in August and September were also a significant factor. Specifically, outcomes in the Australian Football League (AFL) were unfavorable for the bookmaker, which weighed on net win margins. While PointsBet saw gains in active customers and turnover within the mass-market sector, these were not enough to offset the losses from the VIP segment.

"We believe these have been important decisions to make in the context of an increasingly complex regulatory environment in Australia." - PointsBet spokesperson, trading update to investors

The ownership structure is also noteworthy. Since September 2025, MIXI Australia Pty Ltd, a subsidiary of Japan's MIXI Inc, has held a 66.4 percent controlling stake in PointsBet. Under the leadership of new Group CEO Andrew Catterall, who took office in February, the company is attempting to reduce its reliance on high-risk high-rollers.

Background

The downward trend was already visible in fiscal year 2026. Total revenue at the time slipped slightly from A$188.4m to A$186.6m. While the Canadian business, particularly iGaming, excelled with a 58 percent revenue increase to A$17.2m, Australia remained the problem area. There, revenue fell by 1 percent despite an increase in betting volume to A$1.19bn. The introduction of national self-exclusion registers, similar to those in Australia, primarily affects the business with high-staking customers in horse racing.

PointsBet has previously attempted to gain a foothold through expansion in the US but is now focusing more on its core markets in Australia and Canada following the sale of significant US assets. Competition remains fierce, as rivals like Betr Entertainment, which holds about 27.72 percent of PointsBet shares, closely monitor the market. Full half-year results are expected on October 30.

Why it matters for German players

For German players, the situation at PointsBet serves as an important lesson on the importance of regulation. PointsBet is not currently listed on the whitelist of the Joint Gambling Authority of the States (GGL) for the German market. German customers should exclusively play with providers that hold such a license. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) sets very tight limits to ensure player protection. These include the monthly deposit limit of 1,000 euros across all providers and the 1 euro per spin stake limit on virtual slots.

The example from Australia shows that strict compliance measures for VIPs, similar to the German LUGAS system, can reduce provider profitability but ensure a safer environment in the long run. Those playing with illegal providers without a GGL license in Germany not only face legal risks but also miss out on the protection mechanisms that are now costing PointsBet dearly in Australia. The GGL strictly monitors whether providers adhere to these limits to proactively prevent gambling addiction.

What it means for GGL-licensed casinos

German licensees can learn from PointsBet's developments that transparency with authorities is essential. The focus on the mass market rather than a few VIP customers is also the prescribed model in Germany. Since the GGL license specifies clear rules for marketing and player protection, providers must align their business models with stability rather than risky large-scale customers. The technological implementation of limits and exclusion systems is costly but protects operators from heavy fines or the loss of their license.