The PointsBet Holdings Ltd (ASX: PBH) share price will be on watch on Monday following the release of a positive announcement this morning.
What did PointsBet announce?
This morning the online betting company revealed that it has entered into an exclusive 20-year agreement with Lac Vieux Desert Public Enterprise and Finance Commission (LVD).
The release explains that LVD is an arm and instrumentality of and organised under the laws of the Lac Vieux Desert Band of Lake Superior Chippewa Indians. This is a sovereign federally recognised Indian tribe.
The agreement will see PointsBet provide online and mobile sports wagering and gaming (casino) in the State of Michigan, contingent upon obtaining the necessary regulatory licenses.
This follows the signing of legislation allowing both sports betting and online gaming in the State by Michigan Gov. Gretchen Whitmer on December 20.
Under the terms of the agreement, PointsBet will pay to LVD online sportsbook and online gaming market access fees as well as a portion of the Net Gaming Revenues derived from the online sportsbook and online gaming operations.
PointsBet will be responsible for the licensing and regulatory costs in connection with launching and operating the the services.
What now?
The two parties will now work in tandem to offer online and mobile sports wagering and online gaming (casino) services through LVD's online licenses.
PointsBet CEO Sam Swanell said: "PointsBet is pleased to have reached agreement for both online sportsbook and online casino operations with such a forward-thinking Tribe, and we look forward to many years of great success working together in Michigan".
This sentiment was echoed by LVD's chairman, James Williams, Jr. He said: "The Tribe is excited to join forces with PointsBet to further the Tribe's economic development efforts and expand gaming online as allowable under Michigan and Federal law."
"We are confident that this new opportunity will strengthen the Tribe's self-sufficiency and self-determination efforts and provide much needed revenue to continue to expand and enhance tribal governmental services as well as provide jobs for the LVD community," he added.
Management also revealed that the two parties are in exclusive negotiations regarding the operation of retail sportsbook operations at the Northern Waters Casino Resort to complement the online offerings.
