The Pointsbet Holdings Ltd (ASX: PBH) share price is up after revealing more progress in the US.
Pointsbet has a scalable cloud-based wagering platform where it can offer its clients innovative sports and racing wagering products. It includes fixed odds sports, fixed odds racing and pointsbetting.
Pointsbet’s US growth
The corporate bookmaker ASX share announced that it has been authorised by the New Jersey Department of Gaming Enforcement to commence iGaming operations and has launched its proprietary iGaming platform in that state.
This launch follows Pointsbet’s first launch in Michigan in early May 2021.
Pointsbet said that iGaming revenue in the US has grown exceptionally since the repeal of Professional and Amateur Sports Protection Act in May 2018.
Across New Jersey, Pennsylvania, Michigan and West Virginia (all states where Pointsbet has iGaming market access), iGaming revenues reached nearly US$900 million in the June 2021 quarter which if annualised would equate to more than US$3.5 billion per annum.
New Jersey iGaming revenue in-particular has grown at a compound annual growth rate (CAGR) of 25% from 2014 to 2018. Revenue has grown subsequently at 62% in 2019 and 101% in 2020.
Management comments
Pointsbet CEO and Managing Director Sam Swanell said: “We are thrilled to be able to expand our iGaming presence in the US and bring our proprietary online casino product to the robust New Jersey market. The continued growth of our iGaming presence further advances our ability to acquire and retain premium clients, complementing our existing sports wagering products.”
Pointsbet Canada CEO
Pointsbet has announced that it has appointed Scott Vanderwel as CEO of Pointsbet Canada.
Mr Vanderwel was previously the Senior Vice President for Rogers Communications, where he oversaw corporate strategy, operational improvement and digital operations.
This adds to other hires for Canada including the chief commercial offer and Vice President of legal, compliance and people.
Summary thoughts on Pointsbet and the share price
Pointsbet is growing rapidly and its market access continues to grow. How big can the company become? It’s hard to know, but the US is a huge market.
I’d be willing to make a small purchase of Pointsbet shares at this stage, considering it has dropped back in recent months, but continues to grow.
But, there are other ASX growth shares that appeal to me even more.
