Pinnacle Sports
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| Private | |
| Industry | Online gaming |
| Founded | 1998 |
| Headquarters | Curaçao |
| Products | Sportsbook, Casino |
| Website | www |
Pinnacle (formerly known as Pinnacle Sports) is an online gaming website that was founded in 1998. Since its inception, Pinnacle has become one of the world’s largest, fully licensed, online sportsbooks. Pinnacle Sports rebranded to Pinnacle on June 1, 2016 after acquiring the pinnacle.com domain name.
Presently, the company has customers in over 100 countries and is available in 19 (including international English) different languages. While most of the company information, including number of employees and gross revenues are kept private, Michael Konik, author of The Smart Money, believes "it would not be out of line to guess that their [Pinnacle Sports] annual handle is in the billions of dollars."
Pinnacle headquarters are located on the island of Curaçao of the Kingdom of the Netherlands, and the group is fully licensed and regulated by the Government of the Netherlands Antilles (license number: 8048/JAZ2013-013), which also functions as the regulating body for the gaming industry. On March 19, 2015 Pinnacle announced the award of a Class II Remote Maltese Gaming Licence, MGA/CL2/1069/2015 for the provision of sports betting.
Regulation requires that Pinnacle must maintain sufficient funds to be able to honour the winnings of their customers at all times.
When Pinnacle began trading in 1998, most gaming companies used bonuses to lure potential customers. Rather than offer sign up or reload bonuses, Pinnacle became the first sportsbook to introduce a reduced margin pricing model or reduced juice, thus deriving profit from lower margins but a far higher turnover. Pinnacle began offering -105/-104 ($1.95-$1.96) prices on head-to-head match odds and spreads, significantly undercutting the standard -110 ($1.91) pricing model that was used by its competitors.
Pinnacle is able to operate under this pricing model by posting opening 'overnight' lines with smaller limits. This allows Pinnacle to shape their lines according to the betting activity of 'sharp' bettors without exposing the book. These early, low limit bets ultimately allow Pinnacle to offer betting limits with confidence as high as $50,000 or more on selected games with their low margin pricing model.
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