PointsBet is bringing its online and mobile platforms to sportsbooks in New Jersey and New York. On July 23, the Australian bookmaker announced a deal with Meadowlands Racetrack and Tioga Downs Casino to operate a skin under the two properties’ licenses.
The company plans to go live with its signature products in Q4 2018 for New Jersey. According to PointsBet management, expansion into the US was always the plan.
“It was all about America,” said CEO Sam Swanell. “Australia was very much proof-of-concept for us. We always had one eye on America.”
The deal comes a mere 16 months after PointsBet began operations in Australia. However, there will still be a delay for the New York part of the deal.
New York’s legislature failed to pass a sports betting bill in its most recent session. Although PointsBet will benefit from its New Jersey location, that means that the Tioga Downs crew must wait until at least 2019 to begin operations.
PointsBet brings a unique sports betting product to the game
A deal with PointsBet means that American gamblers will soon meet the company’s signature product, a twist on traditional sports betting called Spread Betting. More or less, Spread Betting allows bets on how closely the outcome of a contest relates to the given spread, moneyline, or total.
For instance, let’s say that the over/under of a basketball game is 205. You wager $10 on the over and watch the game.
In a typical situation, you would either win $10 (sans vig) if the total points scored went over 205, or lose $10 if the total points didn’t reach 205. However, with Spread Betting, the amount over or under is now critically important.
So, with that same $10 bet, let’s say that the game produced 210 points scored. We would win our over bet, but receive a $50 payout due to the +5 point differential with the total.
By the same token, if the total was 200 points scored, we lose our bet. This time, we lose $50 because the point differential was -5.
Spread Betting raises some responsible gaming concerns
So, with every game, there is the potential for great profits or losses. In fact, PointsBet will withhold a certain amount over the bet amount to cover some of the loss potential.
Each contest will come with its own multiplier cap. However, some of those caps can be quite large. Bettors could end up winning or losing greater than 10x their original bet.
Swanell acknowledged that there is a potential for terrible outcomes.
“You do have to go through an education patch that makes sure that people don’t go overboard,” he said. “But honestly, in Australia, we haven’t had any issues with anyone getting carried away.”
Swanell said that each new player receives a phone call from a PointsBet representative in order to make sure that the player understands how the game works and the risks involved. PointsBet also allows players to set stop loss measures as a guard against catastrophic losses.
However, taking a stop loss position will also reduce your winning payouts. So, many gamblers, particularly those with problems, may eschew some of the safeguards in place to maximize their chances of a big payday.
PointsBet brings excitement to the Jersey Shore
PointsBet also offers a flexible prop betting system to players. Players can bet not only on wagers devised by PointsBet, but also on prop bets the users themselves propose.
Last NBA season, the site hosted a number of Twitter-suggested wagers. This kind of customization sets PointsBet apart from competitors. It is likely one of the main reasons the deal went through.
“We were impressed by the PointsBet team from our first meeting”, said Meadowlands and Tioga Downs Chairman Jeff Gural. “They have a creative approach, with their highly differentiated Points Betting product and aggressive go to market plan. I believe they are the ideal complement to our other partners and am confident they will quickly become a meaningful player in the US market.”