The PointsBet Holdings Ltd (ASX: PBH) share price is surging higher on Wednesday morning.
At the time of writing, the sports betting company's shares are up 6% to $16.84.
Why is the PointsBet share price surging higher?
Investors have been buying PointsBet shares following the announcement of another major agreement.
According to the release, PointsBet has signed a multi-year strategic partnership with the National Hockey League (NHL). This partnership sees the NHL name PointsBet as an "Official Sports Betting Partner."
The agreement between the two companies spans across both the United States and Australia. As part of the partnership, PointsBet receives rights to use NHL marks and logos, as well as a variety of NHL sponsorship and promotional opportunities for its brand across various linear, digital, and social media assets.
Management notes that it also provides PointsBet with the ability to integrate content into live NHL game broadcasts across NHL media partners. This includes NBC Sports, NBC Sports Regional Networks, Altitude TV, and other potential future linear alignments.
In fact, PointsBet, NBC Sports, and the NHL have already begun installing these integrations for the 2020-21 NHL season. This includes the incorporation of PointsBet odds, data, and insights to complement the pregame, in-game, and postgame broadcasts.
NHL's Chief Business Officer and Senior Executive Vice President, Keith Wachtel, spoke very positively about the agreement.
He said: "As the sports betting landscape evolves at a rapid pace, we continue to develop unique, strategic alliances within the sports gaming industry. Our partnership with PointsBet brings to life our collaboration with our valued media partners and we look forward to enhancing our fan engagement opportunities in concert with both PointsBet and NBC. We are proud to welcome PointsBet to the NHL family."
As part of the partnership, the company has agreed to issue the NHL 43,106 PointsBet shares. This represents ~A$687,000 based on its last close price.
These shares will be in a holding lock, released in equal proportions after 12, 24, and 36 months respectively.
"Thrilled"
PointsBet's US CEO, Johnny Aitken, commented: "PointsBet is thrilled to become an official sports betting partner of the National Hockey League. The NHL's on-ice product provides fans with captivating, nonstop action – it is a privilege to join forces with the NHL and its forward-thinking team, complementing that action with PointsBet's sports betting product."
"We are excited to further elevate fan engagement via offering the most markets in the world for each NHL game, including our exclusive PointsBetting product, and enhance TV and digital integrations with mutual partners like NBC Sports," he concluded.
Following today's gain, the PointsBet share price is now up 42% year to date.
