PointsBet (ASX:PBH) share price up 3% after announcing plans to enter Arizona

Shares in the sports betting company are making a comeback after it revealed plans to tackle the Arizona market

| More on:
Two men excited to win online bet

Image source: Getty Images

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 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.

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.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors saw another day of mild gains for the stock market this Thursday.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Champion Iron, Clarity Pharmaceuticals, St Barbara, and Woodside shares are charging higher today

These shares are having a good session today. But why are investors buying them?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

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

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pleasant Tuesday session for ASX investors today.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Boss Energy, Neuren, Strickland, and Vulcan shares are pushing higher today

These shares are having a better day than most today. But why?

Read more »

Woman holding gold bar and cheering.
Gold

Up 200% in 2025, guess which ASX gold stock is surging 11% again today

Investors are sending the ASX gold stock soaring again today. But why?

Read more »

Man with backpack spreading his arms out and soaking in the sun.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a volatile start to the week for the ASX share market...

Read more »