PointsBet share price jumps 10% on BetMakers US deal

The PointsBet Holdings Ltd (ASX:PBH) share price is racing higher after announcing a deal with BetMakers Technology Group Ltd (ASX:BET) in the United States…

| More on:

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 has been a strong performer on Thursday.

In morning trade the sports betting company's shares are up over 10% to $6.09.

Why is the PointsBet share price storming higher?

Investors have been buying PointsBet's shares after it announced an agreement with BetMakers Technology Group Ltd (ASX: BET). That agreement will see it offer fixed odds betting on horse racing in New Jersey, subject to the receipt of all necessary regulatory and other approvals.

This follows BetMakers signing an exclusive 10-year agreement with New Jersey Thoroughbred Horsemen Association and Darby Development in February to deliver and manage fixed odds horse racing in New Jersey.

According to the release, the agreement sees Pointsbet offer fixed odds betting to New Jersey clients on all Monmouth Park race meetings. After which, it intends to expand the offering into New Jersey to include races and vision from other domestic and international jurisdictions, as and when such content is approved.

In addition to this, the agreement also provides the option for PointsBet to offer fixed odds betting on horse racing to clients in other US states via BetMakers in the future should the opportunity arise.

"Significant opportunity."

PointsBet Group CEO and Managing Director, Sam Swanell, was pleased with the agreement.

He said: "Securing an agreement with BetMakers is a major step in what we believe to be an important strategy for our US plans. As a Company, we understand thoroughbred, harness and greyhound racing and we intend to capitalise on the expertise we have gained in Australia as we roll out racing products into the US market where legal, starting in New Jersey."

"We see this as a significant opportunity. Annually, there are twice as many horse races in the US as there are in Australia, with a much larger total prize pool, however the amount wagered per capita in the US on horse racing remains a fraction of that in Australia," he concluded.

BetMakers CEO, Todd Buckingham, spoke positively on the agreement. He commented: "BetMakers sees Pointsbet as a perfect partner to launch Fixed Odds in the US. We have a great working relationship with Pointsbet, which is one of the fastest growing bookmakers in Australia and the burgeoning US market."

This news has gone down well with BetMakers shareholders as well. At the time of writing the BetMakers share price is up over 10% to 42 cents.

James Mickleboro 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 Gainers

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Share Gainers

3 ASX 300 shares going gangbusters on Wednesday

Investors are bidding up these three ASX 300 shares today. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a huge Tuesday for ASX shares, with the index resetting its record high.

Read more »