Online bookie Pointsbet backs an age-dependent social media ban to protect children

Bookmaker Pointsbet believes the government’s social media restriction on children is the correct step in order to protect them from adults-only sites such as online betting.

Pointsbet boss Sam Swanell says his company welcomes age restrictions on social media access.

Bookmaker Pointsbet says social media restrictions on children is the right step to create a sustainable regulatory framework for access to adults-only sites, including online betting.

Pointsbet chief executive Sam Swanell said the implementation of the federal government policy limiting social media access to Australians over the age of 16 years was a positive move for categories such as wagering.

The Albanese government last year passed laws requiring “age-restricted social media platforms to take reasonable steps to prevent Australians under 16 years old from having accounts”.

“We’ve consistently argued that reform should lean into the very real potential of digital and social media platforms to deliver sign-in, age gating, opt-in or out, and volume and frequency caps to consenting adults,” Mr Swanell said.

The Alliance for Gambling Reform says than 430,000 Australian children were likely to be gambling and that almost 40,000 were categorised as risky gamblers.

Announcing the company’s second-quarter update, Mr Swanell said Pointsbet’s performance had been affected by its investment in responsible gambling interventions, including customer due diligence.

Pointsbet chief executive Sam Swanell. Picture: Aaron Francis

The shares slumped 15 per cent to 83c on concerns compliance costs might rise.

“Pointsbet continues to invest in high compliance standards in full knowledge that the larger-staking client bet we choose to close for compliance reasons often becomes available for smaller wagering operators that do not focus on their compliance obligations and as such operate at materially lower standards from larger operators,” Mr Swanell said.

He said the company was expected to have improved its earning position by $10m in the first half, narrowing its loss to $3.3m. Revenue grew 6 per cent to $124.4m.

The company will release its full first-half results in February. It had now “passed a very important milestone” by delivering full-year earnings before interest, taxes, depreciation, and amortisation for calendar year 2024 of $8.2m.

“These results have been delivered on the back of revenue growth and improvement in our gross profit efficiency,” he said.

“As we have stated consistently over recent quarters, our focus is not just on delivering revenue, but also ensuring it is earned efficiently from a gross profit perspective.”

Pointsbet, which also has operations in Canada, said Australia contributed to the sustainable growth of the business. Wagering companies such as Tabcorp, Pointsbet and Bluebet are being impacted by cost-of-living pressures weighing on customers who are betting less often and in smaller amounts than at the height of Covid-19 lockdowns.

“Our client base of genuine clients is growing along with our revenue base,” Mr Swanell said.

“We continue to invest in technology and marketing to drive our growth, and we have sustainable strategies in both Australia and Canada.”

The company has had a rollercoaster ride on the ASX, growing quickly during Covid-19 lockdowns and, at one stage in August 2020, having a market capitalisation of more than $2bn after a $300m capital raising. Its current market cap is just over $270m.

Mr Swanell said Pointsbet was active in encouraging the wagering industry, governments, sports bodies and media to promptly move on pragmatic advertising reform in Australia.

The federal government’s proposal to ban or restrict gambling advertising has been delayed until after this year’s election.

Originally published as Online bookie Pointsbet backs an age-dependent social media ban to protect children