PointsBet share price surges on Indiana launch

The Pointsbet Holdings Ltd (ASX:PBH) share price is moving higher today after the bookmaker received authorisation and launched in Indiana.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pointsbet Holdings Ltd (ASX: PBH) share price is moving higher today after the bookmaker announced it has received authorisation and launched in Indiana.

After surging as much as 8.86% shortly after the announcement this morning, Pointsbet shares have pulled back since to be trading 0.25% higher at $3.96 at the time of writing.

With operations in Australia and the United States, PointsBet has developed a scalable cloud-based wagering platform through which it offers clients innovative sports and racing wagering products.

PointsBet has been pursuing an aggressive growth strategy in the US. The company is an early mover in US states where changes in legislation have meant restrictions against online gambling have been relaxed.

Details of the Indiana approval

Shortly after the market opened this morning, PointsBet announced it has launched operations in the State of Indiana after receiving Mobile Sports Wagering Launch Authorisation from the Indiana Gaming Commission. The approval was awarded to PointBet's wholly-owned subsidiary, PointsBet Indiana.

With this, the company now believes it will be in a good position to effectively compete and raise its market share in Indiana. The timing of the new launch complements the start of the NCAA March Madness basketball tournament, a period in which PointsBet noted is important for acquisition.

The Indiana market represents the company's third digital sportsbook operation in the United States. It is also the first under PointsBet's partnership with Penn National Gaming which was announced in August last year.

Indiana offers significant potential to grow market share

In today's release, PointsBet highlighted that Indiana is the 17th largest US State by population. Additionally, the estimated total sports wagering revenue projected to be generated in Indiana in 2023 is US$317 million.

On top of this, PointBet added that Indiana has an attractive effective tax rate and there are only a limited number of current competitors, positioning the company well to gain market share.

What's more, PointsBet will use the new launch to leverage the massive US television advertising market to increase its brand awareness.

Commenting on today's announcement, Johnny Aitken, PointsBet US CEO, said: "The PointsBet team is excited to share that we are now officially live in Indiana – our third state of operation – where we look forward to providing the sports-loving community in the Hoosier State with the fastest, premium sports betting product they deserve."

Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Share Gainers

Why Accent, DroneShield, EBR Systems, and Titomic shares are pushing higher

These shares are rising more than most today. But why?

Read more »

Group of successful real estate agents standing in building and looking at tablet.
Opinions

Here are Macquarie's top 3 stock picks in the ASX financial share sector in April

Macquarie is bullish about these three financial stocks.

Read more »

Falling yellow arrow with descending wooden bars with the percentage sign written on them.
Share Market News

Will ASX 200 investors get an interest rate cut in May? Here's what the RBA minutes tell us

With inflation slowing and a global trade war looming, will ASX 200 investors receive an RBA interest rate cut in…

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Why is this ASX All Ords mining share soaring 33% on Tuesday?

Investors are sending the ASX All Ords mining share flying higher. But why?

Read more »

Medical workers examine an xray or scan in a hospital laboratory.
Share Gainers

Guess which ASX All Ords stock just rocketed 28% on a new commercial contract!

The ASX All Ords stock has grabbed plenty of investor interest on Tuesday.

Read more »

Two miners standing together.
Gold

Northern Star Resources set to buyout rival De Grey mining

As gold soars, ASX miners continue to mine the acquisition pipeline.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Opinions

Is the Qantas share price a buy in the tariff ASX stock market volatility?

Is this stock now a bargain after the market volatility?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Another positive session is expected for Aussie investors today.

Read more »