MIXI learns cost of federal wagering clamp as PointsBet revenue tumbles 16 per cent

By the Editorial Team · Wednesday, October 14, 2026

Japanese entertainment company MIXI, which acquired a majority stake in online betting firm PointsBet last year, reported a 16% drop in first-half revenue to about $113 million, driven primarily by tougher Australian federal regulations on wagering advertising. This decline has led to a over 35% fall in PointsBet’s share price and a projected first-half earnings loss, highlighting significant challenges in the evolving regulatory environment for the Australian betting industry.

Japanese entertainment company MIXI, which acquired a majority stake in online betting firm PointsBet last year, is facing significant challenges as recent federal regulatory changes weigh heavily on the wagering industry. PointsBet reported a 16 percent decline in first-half revenue, falling to approximately $113 million from $135 million in the same period the previous year, largely due to the impact on its Australian operations.

MIXI purchased a 66.4 percent stake in PointsBet for $430 million in September 2025, paying $1.25 per share. However, since the acquisition, the company’s shares have dropped over 35 percent to 82 cents, eroding more than $140 million in market capitalization.

PointsBet attributed the revenue downturn to stricter regulatory measures introduced by the Australian federal government. These new rules include restrictions on wagering advertising, such as live sports broadcast blackouts, limits on the number of ads, and bans on in-stadium promotions. Online gambling advertisements are now subject to a “triple-lock” system designed to ensure that only adults who have not opted out are targeted, alongside prohibitions on inducements like bonus bets to at-risk individuals.

The company described the resulting environment as “increasingly complex,” pointing to compliance costs and a “sustained trend of double-digit turnover and revenue declines” among its highest-value customers. PointsBet is now projecting a first-half earnings loss ranging between $6 million and $8 million.

Earlier in the year, PointsBet reported a slight 1 percent decrease in net win for the nine months ended March 31, with revenue down by the same margin and profits falling 6 percent. At the time, the company expressed support for the federal government’s regulatory initiatives and noted that it was already adjusting its advertising strategy in anticipation of reform.

PointsBet also cited adverse results in sports betting, particularly in Australian Football League (AFL) markets, which offset gains from expanding betting options on its platform.

The acquisition battle for PointsBet last year involved a protracted contest between MIXI and Australian competitor Betr. MIXI increased its offer multiple times—from an initial $1.06 per share to a final bid of $1.25—ultimately securing control despite Betr’s higher proposed offer of $1.40 per share in a cash and stock deal. The PointsBet board consistently recommended the MIXI offer.

Like PointsBet, Betr’s shares have faced a steep decline over the past 12 months, losing more than 42 percent since mid-September 2025 and closing down by 3 percent at 16 cents on Tuesday. Both companies appear to be contending with a challenging regulatory landscape that has reshaped the Australian wagering market.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.