The PointsBet Holdings Ltd (ASX: PBH) share price is climbing today. This comes after the company announced plans to enter the Arizona sports betting market.
At the time of writing, the PointsBet share price is up 2.91% to $11.85.
Image source: Getty Images
What did PointsBet announce?
PointsBet has entered into an exclusive agreement with Cliff Castle Casino Hotel to pursue online sports betting market access in Arizona.
Cliff Castle Casino Hotel is a subordinate economic organisation of the Yavapai-Apache Nation, a federally recognised native American tribe.
The legalisation of sports betting in the United States has been managed on a state-by-state basis. Arizona successfully passed its Sports Wagering Act for online sports betting in April this year.
According to the announcement, the exclusive 10-year agreement will see PointsBet and the Yavapai-Apache Nation partnering to apply for a 'first skin' licence to operate online sports betting. First skin refers to having the right to use the first online licence a land-based partner is granted in a particular state.
PointsBet will pay the Yavapai-Apache Nation both a market access fee and a portion of its net gaming revenues from online sportsbook operations.
In addition, PointsBet will also front up licencing and regulatory costs for launching and operating its betting services.
The agreement also includes the creation of a PointsBet branded retail sportsbook at the Cliff Castle Casino Hotel.
The PointsBet share price is rising after the announcement. By contrast, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.62% to 7,241.
What did management say?
PointsBet USA CEO Johnny Aitken hailed the milestone, commenting:
Alongside first-class partners in the Cliff Castle team, PointsBet is thrilled to begin the process toward offering the passionate, sports-loving communities of Arizona a fast and differentiated sports betting product across every customer touchpoint.
We look forward to quickly and responsibly introducing sports bettors and fans to the competitive advantages PointsBet possesses in owning our technology end-to-end, such as market-leading ease of use and the deepest slate of betting options available in the world.
PointsBet share price sitting near 7-month lows
At its highest point this year, the PointsBet share price had a year-to-date return of 52% on 16 February. Fast forward to today, its year-to-date return has tumbled into negative territory, down 0.93%.
PointsBet isn't alone in its underwhelming performance. Its US-listed rival, Draftkings, also struggling to find headway, down 0.45% this year.
