Last December marked the launch of PointsBet Virginia, making it the 11th and latest addition to the online sportsbook scene in the state.
Despite other operators receiving approval in early 2021, PointsBet is determined to achieve ambitious goals in the commonwealth of Virginia, despite facing a delayed start.
According to an interview with PlayVirginia, Kyle Christensen, the Chief Marketing Officer of PointsBet, expressed the company’s aspiration for their Virginia product to secure a 10% share of the market.
In the inaugural year of Virginia sports betting, bettors amassed a staggering $3.2 billion in wagers. If the company secures a 10% market share, it would mean handling bets worth $320 million in 2022. As the market matures throughout the year, these figures are likely to grow even more significant, provided Virginia’s overall betting volume rises.
However, achieving such goals will prove to be challenging, particularly in a highly competitive market like Virginia.
PointsBet launched in VA after established brands like DraftKings, FanDuel, BetMGM, and Caesars Sportsbook had already made a name for themselves in the state’s sports betting market. With a total of 11 sportsbooks operating within VA, these brands are widely recognized.
Despite the competition, Christensen believes that the company has the ability to meet expectations.
PointsBet Virginia is spending smarter than its counterparts
Christensen will prioritize his marketing efforts towards retaining PointsBet’s customers instead of competing with the larger players in the industry who have greater financial resources.
Christensen expressed our ongoing commitment to achieving our goal of attaining a 10% market share. Our main emphasis is on catering to our loyal customer base. Despite the considerable promotional expenses incurred by competitors like DraftKings and FanDuels, who aim to attract a larger user population, we remain dedicated to serving our core consumers. We firmly believe that by consistently delivering high-quality value, we will ultimately secure a significant market share.
In simpler terms, PointsBet will achieve more with fewer resources.
As Christensen said:
In my role as a Chief Marketing Officer, I believe that our company is spending its resources efficiently to attract high-quality customers who will bring long-term value. On the other hand, it seems that DraftKings and FanDuel are focusing on acquiring a larger customer base. Both approaches have their advantages and disadvantages. However, I am confident in our strategy and believe that we can achieve a 10% market share in the future.
What made Virginia appealing?
PointsBet had already been operating in seven other US states before its launch in Virginia in December. Soon after its introduction in Virginia, officials from PointsBet also included New York in the list of states they were operating in.
PointsBet, having a product presence in prestigious locations like the Empire State, New Jersey, and Michigan, has successfully tapped into some of the biggest markets in the United States. However, what motivated PointsBet to seek licensing in Virginia instead of other states?
Christensen explained that considering the significant influence of the surrounding metro area on the East Coast and the fact that it is the 12th most populous state, it was a logical choice from a business perspective.
These are the states currently being served by PointsBet.
- New York
- Illinois
- Michigan
- New Jersey
- Virginia
- Indiana
- Colorado
- Iowa
- West Virginia
As the company’s expansion efforts persist across the nation, the list will inevitably keep expanding.
Partnership with Colonial Downs got PointsBet Virginia off the blocks quickly
According to Christensen, the partnership between the company and Colonial Downs played a significant role in their entry into the state. He believed that the Virginia-based racetrack was instrumental in their rapid achievements.
Moreover, he believed that the exceptional PointsBet technology would attract and engage users to the platform.
Christensen praised the partnership, highlighting their vast database and reputable brand established in Virginia. He emphasized the value of collaborating with them to showcase our cutting-edge technology and provide users with the opportunity to engage in live in-game betting, which greatly contributed to our successful launch.
Furthermore, the presence of NBA Hall of Famer and Virginia native Allen Iverson associated with Colonial Downs proved to be advantageous.
The dark cloud over Virginia sports betting
The only drawback of Virginia is the prohibition on betting for in-state college events. The state boasts an abundance of top-tier college athletics and the passionate fans that accompany them.
The ban is causing significant financial losses for both operators and the state government.
Instead of dwelling on uncontrollable factors, PointsBet executives are solely focused on effectively executing their business plan.
Jeff Alstadter, director of communications and public relations for PointsBet, stated that they refrain from providing remarks on particular legislation. He mentioned being informed about the current situation and expressed contentment with the acquisition of a license in Virginia.
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