The Pointsbet Holdings Ltd (ASX: PBH) share price is up right now after the bookmaker announced more progress in the US.
Pointsbet is a corporate bookmaker with operations in Australia and the US. It wants to provide more markets on the major Australian and US sports than any other bookmaker.
Pointsbet expands in the US
The betting business announced that its Arizona subsidiary has entered into an exclusive agreement with Cliff Castle Casino Hotel, a ‘subordinate economic organisation’ of the federally recognised Yavapai-Apache Nation, to pursue online sports betting market access in Arizona.
Pointsbet explained that online betting was legalised by Arizona Governor Doug Ducey in April 2021. The Sports Wagering Act now paves the way for up to 20 sportsbooks to operate in Arizona, with both professional sports franchises and tribal casinos being eligible to apply for a licence.
The agreement term is for 10 years. Pointsbet will pay a market access fee as well as a portion of the net gaming revenue made from the online sportsbook operations. The ASX company will be responsible for the licensing and regulatory costs in connection with launching and operating the Pointsbet services.
The company has also agreed to make an annual donation to a public interest fund designation by the Yavapai-Apache Nation that benefits their youth.
Management comments
Pointsbet USA CEO Johnny Aitken said: “Alongside first-class partners in the Cliff Castle team, Pointsbet is thrilled to begin the process toward offering the passionate, sports-loving communities of Arizona with a fast and differentiated sports betting product across every customer touchpoint. We look forward to quickly and responsibly introducing sports bettors and fans to the competitive advantages Pointsbet possesses in owning our technology end to end, such as market-leading ease of use and the deepest slate of betting options available in the world.”
Summary thoughts on Pointsbet and the share price
Pointsbet continues to increase its potential growth in the US. The more US states it has access to, the more it can grow its turnover into the future. It’s hard to know exactly how large Pointsbet can become, but it is already priced for quite a lot of success. The US betting market could become huge.
At the current Pointsbet share price under $12, if I were interested, I’d be willing to make a small investment and buy more either on price weakness or continuing improvements in market access.
But there are also some other ASX growth shares that I’ve got my eyes on.
