PointsBet has defended the marketing and sales cost of its US expansion, arguing North America has grown into the key market for wagering because of its population size, sports structure and technological investment.

The $872 million [US$592 million] wagering group recorded its second straight year of losses on Wednesday, as the Melbourne-born business spent $240 million in sales and marketing, with $162 million pumped into the US alone.

Chief executive Sam Swanell said the marketing and sales spend would not continue in 2023, but was a “necessary” set-up cost to become the seventh-biggest operator in North America’s $13 billion market, with 3.7 per cent of market share.

PointsBet is already available in Canada and operates in 11 US states…, up from seven in 2021.