Key points
- The PointsBet share price has fallen victim to the negative market sentiment on Tuesday
- Among the selling, PointsBet announced a successful launch in New York
- The sports betting company is now operational across nine US states
The PointsBet Holdings Ltd (ASX: PBH) share price has failed to garner excitement on Tuesday following the release of its latest market update.
In afternoon trade, shares in the sports betting company are down 8.63% to $5.19 apiece. Though, PointsBet is not alone in its disappointing performance. The tech sector is 3.08% down from where it was yesterday as the market nears correction territory.
Nonetheless, let's delve into the details of PointsBet's announcement.
Another US state chalked up for PointsBet
At the beginning of today's session, investors were keeping the PointsBet share price close to its previous close of $5.68. However, this soon deteriorated throughout the morning as the company reached an intraday low of $5.18.
Shareholders may have thought PointsBet's announcement, released around 2:30 pm, would revive the company's shares. Unfortunately, the news appears to have gone unnoticed by the market.
According to the company's release, PointsBet has successfully launched its online and mobile sports betting offerings in the US state of New York. Furthermore, the first bet through its platform in the state was recorded at 10:09 pm New York time.
Additionally, this brings the company presence to nine states across the US where its sports betting is operational. Other states include New Jersey, Illinois, Colorado, and Virginia. Yet, looking at the PointsBet share price today, you wouldn't know it.
PointsBet's group CEO and managing director Sam Swanell commented on the news, stating:
This marks a momentous day for PointsBet in officially launching within the state of New York, poised to be one of the largest markets in the United States. The PointsBet team is excited to prove our reputation and consistent ability to deliver a world-class experience to New York sports bettors.
Notably, this update comes only five days after the company was awarded a sports wagering license by the Pennsylvania Gaming Control Board. In turn, PointsBet will have access to one of the biggest sports betting states in the US.
Taking a punt on the PointsBet share price
It has been a brutal start to the year for the PointsBet share price. On a year-to-date basis, PointsBet shares are down roughly 25%. And, when we zoom out to the last 12 months, the pain compounds to a 66% fall in the company's share price.
However, one broker is staying on the optimistic side of the fence for this ASX-listed sports betting company. As my colleague James recently covered, Goldman Sachs has reiterated its buy rating on the PointsBet share price. In addition, the broker tagged it with a price target of $11.00.
This would suggest a potential upside of 108% from the current PointsBet share price.
