The Pointsbet Holdings Ltd (ASX: PBH) share price is rising after the company announced more good news from the US.
Pointbet’s New York success
Pointsbet told investors about a meeting held in the US. At that public meeting held on 8 November, the New York State Gaming Commission recommended that Pointsbet’s New York company be awarded a ‘platform provider’ licence to operate mobile sports wagering in New York.
Pointsbet wasn’t the only one awarded a licence. There were eight other operators that were recommended by the New York State Gaming Commission: FanDuel, BallyBet, BetMGM, DraftKings, Rush Street Interactive, Caesars, WynnBet and Resorts World.
Official approval procedures will follow, with the recommended operators to undertake independent system testing ahead of an official launch, which is expected in early 2022.
Management comments
Pointsbet US CEO Johnny Aitken said:
“Today’s news of being recommended by the New York State Gaming Commission marks an exciting moment for us at Pointsbet.
“Having the potential to secure market access to New York State – expected to be one of the largest and most important markets in the United States – represents another major milestone for our company, our brand, and our technology. We are thankful to the Gaming Commission for this recommendation and believe it speaks volumes to PointsBet’s reputation and ability to deliver an unrivaled, world-class experience. We eagerly await the official opportunity to leverage our exclusive sports betting partnership with NBC Sports and introduce the nation’s premier sports betting product to the countless passionate, sports-loving New Yorkers.”
Is the Pointsbet share price an opportunity?
I’m not surprised Pointsbet shares are up more than 4% in reaction to this update, considering how important the New York market could be for Pointsbet.
Despite today’s rise, Pointsbet is still down around 16% over the last month and 37% in the last six months.
The FY22 first quarter seemed to be the cause of the recent dip. That was despite total turnover rising 42% to $979.9 million, the total gross win grew 66% to $117.1 million and the net win jumped 76% to $67.3 million. The US net win soared 307% to $12.5 million.
Cash active clients in Australia and the US grew 79% and 367% year on year. More customers should help fuel further growth in the future.
It’s growing quickly, and I think it’s worthwhile watching it. Strong compound growth at a lower price seems better to me.
But there are other ASX growth shares that could be even better picks.
